AMERICAN HOME: Seeks March 3 Extension of Plan Filing Period------------------------------------------------------------American Home Mortgage Investment Corp. and its debtor-affiliatesask the U.S. Bankruptcy Court for the District of Delaware toextend their exclusive periods to:

(a) file a plan through March 3, 2008; and

(b) solicit and obtain acceptances of that plan through May 5, 2008.

James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor,LLP, in Wilmington, Delaware, relates that since bankruptcyfiling, the Debtors have made progress in administering thebankruptcy cases by, among other things, stabilizing theirbusiness operations, eliminating administrative costs arisingfrom discontinued portions of the Debtors' business operations,and commencing, conducting, and concluding a hotly contested saleprocess for the Debtors' loan servicing business.

Mr. Patton further relates that, among other things, the Debtors:

-- sought and obtained the Court's authority to establish procedures to effectuate the sale of certain assets related to their mortgage origination business, including real property leases, equipment leases, and furniture, fixtures and equipment at the premises;

-- have closed and fully vacated numerous locations, within the first 90 days of the cases and avoided significant additional administrative rent liability by vacating the various locations in a timely manner;

-- engaged in negotiations and stipulations with Federal Home Loan Mortgage Corp. and the Government National Mortgage Association permitting the Debtors to continue to service certain mortgage loans for sufficient periods of time to effectuate the orderly transfer of the servicing of the loans for value; and

-- sought and obtained the Court's permission to sell their Servicing Business to AH Mortgage Acquisition Co., Inc.

Mr. Patton relates that as with other large and complex cases,the initial 120-day exclusive period did not provide the Debtorswith an adequate opportunity to develop and negotiate aChapter 11 plan. He adds that the contested nature of nearlyevery facet of these cases has prevented the Debtors and theirprofessionals from turning their attention to a Plan. He pointsout that the Debtors have been focused on stabilizing the theirbusiness operations in the wake of the unprecedented upheaval inthe mortgage loan and mortgage-backed securities experiencednationwide.

Additionally, there are a variety of other tasks that are lieahead of the Debtors before a meaningful Plan can be proposed,Mr. Patton notes. He discloses that the Debtors still havenumerous assets that must be marketed and sold, including thetheir federally chartered thrift and bank, certain whole loansand construction loans, and certain other real estate holdings,like their corporate headquarters in Melville, New York.

Termination of the Debtors' Exclusive Periods would adverselyimpact their business operations and the progress of these cases,Mr. Patton says. If the Court were to deny the request forextension, with any party-in-interest free to propose a Plan,that would foster a chaotic environment with no central focus, henotes.

Judge Sontchi will convene a hearing on December 21, 2007, at10:00 a.m., to consider the Debtor's request. Pursuant toDel.Bankr.LR 9006-2, the Debtor's Exclusive Periods isautomatically extended until the conclusion of that hearing.

About American Home

Based in Melville, New York, American Home Mortgage InvestmentCorp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investingin mortgage-backed securities and mortgage loans resulting fromthe securitization of residential mortgage loans originated andserviced by its subsidiaries.

AMERICAN HOME: $50 Mil. Limited Recourse Financing Gets Final OK----------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware gaveAmerican Home Mortgage Investment Corp. and its debtor-affiliatesauthority, on a final basis, to enter into a $50,000,000 debtor-in-possession loan and security agreement dated Nov. 16, 2007,among the Debtor-borrowers, several lenders, and AH MortgageAcquisition Co., Inc., in its capacity as lender andadministrative agent.

The Debtors previously obtained interim approval to borrow up to$35,000,000 under the limited recourse DIP facility, to fund theirloan servicing business, pursuant to the terms of the final orderand the Limited Recourse DIP Financing Documents.

Upon the payment of the purchase price of the Servicing Businessat the initial closing, and to secure the repayment of theLimited Recourse DIP obligations, the Administrative Agent isgranted a valid, binding, enforceable, and perfected securityinterest in and lien on (i) all the Purchased Assets, includingall proceeds and profits, and (ii) the collateral that isimmediately junior to any permitted lien.

The Court reminds the parties that nothing in the Final Orderwill be construed as granting the Secured Parties a securityinterest in or lien on any (i) proceeds of the sale of theServicing Business, (ii) proceeds of the Bank of Americacollateral received by the sellers but not paid to BofA, (iii)the Sellers' assets that are not being purchased by AHMAcquisition Co., or (iv) other assets of the Debtors used in theServicing Business, but not purchased by AHM Acquisition.

The liens and security interests granted to the AdministrativeAgent will not (i) be subject to any lien or security interestthat is avoided and preserved for the benefit of the bankruptcyestates, or (ii) be subordinated to any other lien or securityinterest pursuant Section 364(d) of the Bankruptcy Code, JudgeSontchi notes.

In an event of default, Judge Sontchi notes, the AdministrativeAgent may:

-- terminate all or any portion of the Limited Recourse DIP Facility and the Secured Parties' obligation to any further loans or advances;

-- declare the Limited Recourse DIP Obligations to be immediately due and payable; and

-- subject to certain Limited Recourse Provisions, exercise the sole rights and remedies against the collateral, as allowed under the request's interim and final orders, and the Limited Recourse DIP Documents.

About American Home

Based in Melville, New York, American Home Mortgage InvestmentCorp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investingin mortgage-backed securities and mortgage loans resulting fromthe securitization of residential mortgage loans originated andserviced by its subsidiaries.

AMERICAN HOME: Court Extends Removal Period Until March 4---------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware hasgranted American Home Mortgage Investment Corp. and itsdebtor-affiliates' request to extend to March 4, 2008, thedeadline to file notices of removal of all civil actionspending as of Aug. 6, 2007.

The Court, however, noted that the order is without prejudice to(i) any position the Debtors may take regarding whetherSection 362 of the Bankruptcy Code applies to stay any litigationpending against them, or (ii) the Debtors' right to seek furtherextensions.

As reported in the Troubled Company Reporter on Nov. 9, 2007,since their bankruptcy filing, the Debtors said they have focusedprimarily on maximizing the value of their bankruptcy estates forthe benefit of the stakeholders through the orderly liquidationof assets. To that end, the Debtors have solicited, negotiatedand sought approval for several sales of various assets,including the Debtors' mortgage loan servicing business.

According to the Debtors, Chapter 11 imposes on them additionalobligations to prepare schedules of assets and liabilities,produce monthly operating reports, respond to creditor inquiries,retain professionals and handle various tasks. Hence, they havenot had an opportunity to fully investigate all of the StateCourt Actions to determine whether removal is appropriate.

Based in Melville, New York, American Home Mortgage InvestmentCorp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investingin mortgage-backed securities and mortgage loans resulting fromthe securitization of residential mortgage loans originated andserviced by its subsidiaries.

AMERICAN HOME: Lease Decision Period Extended Until March 3-----------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware extendedAmerican Home Mortgage Investment Corp. and its debtor-affiliates'time to assume or reject any of the leases, subleases or otheragreements, to which any of the Debtors are a party that may beconsidered an unexpired lease of nonresidential real propertythrough and including March 3, 2008.

As reported in the Troubled Company Reporter on Nov. 15, 2007,since their bankruptcy filing, the Debtors have focused primarilyon maximizing the value of the Debtors' bankruptcy estates fortheirstakeholders through the orderly liquidation of their assets. Asa result of the expedited and lengthy sale process of theDebtors' loan servicing business and other matters the Debtorsfaced during the initial stage of their bankruptcy cases, theyhave not had ample opportunity to evaluate all of their remainingreal property leases, James L. Patton, Jr., Esq., at YoungConaway Stargatt & Taylor LLP, in Wilmington, Delaware, said.

As of November 8, 2007, the Debtors have assumed and assignedapproximately 40 unexpired leases of non-residential realproperty related to the Debtors' loan origination business,Mr. Patton disclosed. In addition, the Court has approved theDebtors' request to extend the deadline for lease disposition forunexpired leases related to the Servicing Business until March 3,2008.

Mr. Patton contended that the extension will not damage thelessors beyond the compensation that is available to them underthe Bankruptcy Code because the Debtors had and will performtheir undisputed obligations in a timely fashion, including thepayment of postpetition rent. He also noted that the Debtorsshould not be forced at this relatively early stage of theChapter 11 cases to prematurely assume the Leases and incurpotentially significant and unnecessary administrative claims, orto reject the Leases and lose the opportunity to obtain value forthose leases.

Based in Melville, New York, American Home Mortgage InvestmentCorp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investingin mortgage-backed securities and mortgage loans resulting fromthe securitization of residential mortgage loans originated andserviced by its subsidiaries.

The affirmations, affecting approximately $148.3 million of theoutstanding certificates, reflect a stable relationship betweencredit enhancement and expected loss. Class B-5 was placed onRating Watch Negative due to recent trends in delinquencies. Thetransaction has serious delinquencies (loans delinquent more than90 days, inclusive of loans in foreclosure, bankruptcy, and realestate owned) of 4.64%, while the CE of the B-5 bond is 1.01%.The deal has incurred 0.03% of loss to date. Fitch will closelymonitor this transaction to see how delinquent loans move throughthe pipeline before taking rating action on this class.

The collateral of the above transaction consists of conventional,fully amortizing, 30-year adjustable-rate mortgage loans securedby first liens on one- to four-family residential properties. Theloans were acquired by UBS from various originators and areserviced by various servicers. Wells Fargo Bank N.A. (rated 'RMS1'by Fitch) is the master servicer..

As of the November 2007 distribution date, the pool factor isapproximately 35% and the transaction is seasoned 39 months.

Through this arrangement, ATI will gain eight additional productlines that were part of Arrow ECS' Software Group and will overseepartner relationships and internal staff for that business.

Product lines that will be transferred to ATI include Bakbone,BEA, CA, CommVault, McAfee, Novell, Oracle and Symantec. ArrowECS' storage, HP and IBM businesses will not change.

"Arrow ECS is committed to increasing the depth of our offeringsin high- growth sectors, including software and security," KevinGilroy, president of Arrow ECS, said. "In addition, Arrow ECS isfocused on delivering comprehensive solutions to our partners.This initiative enables Arrow ECS to best serve our softwaresuppliers and partners by providing focused support and dedicatedresources to grow their business."

It is anticipated that the suppliers will be transitioned to ATIby the end of Arrow's first quarter in 2008. A team comprisingrepresentatives from both Arrow ECS and ATI will manage theintegration process.

"This integration best enables Arrow ECS and ATI to share andapply best practices within our respective software businesses,"Bill Botti, president and chief executive officer of ATI, said."Partners will benefit from enhanced complementary product linesand a full suite of professionalservices available through ATI."

ATI represents more than 30 software and security suppliers,including Citrix and VMware.

About Arrow Electronics

Headquartered in Melville, New York, Arrow Electronics Inc.-- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electroniccomponents and computer products. Arrow serves as a supplychannel partner for nearly 600 suppliers and more than 130,000original equipment manufacturers, contract manufacturers andcommercial customers through a global network of over 270locations in 53 countries and territories.

ASSET BACKED: Moody's Lowers Ratings on 13 Tranches---------------------------------------------------Moody's Investors Service has downgraded the ratings of 13tranches and has placed under review for possible downgrade theratings of 2 tranches from 2 transactions issued by issued byAsset Backed Securities Corporation Home Equity Loan Trust in2007. Additionally one downgraded tranche remains on review forpossible further downgrade. The collateral backing these classesconsists of primarily first lien, fixed and adjustable-rate,subprime mortgage loans.

In its analysis, Moody's has combined its published methodologyupdates as of July 13th, 2007 to the non delinquent portion of thetransactions. Collateral backing these transactions is alsoexperiencing higher than anticipated rates of delinquency,foreclosure, and REO relative to credit enhancement levels.

Series 2004-2 Group 3 -- Classes 3-A-1 to 3-A-17, 3-A-IO and 3-30-PO affirmed at 'AAA'.

The upgrades are taken as a result of improvement in therelationship between credit enhancement and future expected lossesand affect approximately $3.6 million of outstanding certificates,as of the November 2007 distribution date. The affirmationsreflect a satisfactory relationship between CE and future lossexpectations and affect approximately $370 million of outstandingcertificates. This transaction is 39 months seasoned and the poolfactors (current collateral balance as a percentage of initialcollateral balance) for the various pools range from approximately36% to 64%.

BAFC, a special purpose corporation, purchased the mortgage loansfrom various sellers and deposited the loans into the trust. Theabove pools comprise of conventional, fixed-rate mortgage loanssecured by first liens on one- to four-family residentialproperties. Wells Fargo bank, N.A., rated 'RMS1' by Fitch, is themaster servicer for the loans in these pools.

BAYWOOD INT'L: Posts $202,644 Net Loss in Third Quarter-------------------------------------------------------Baywood International Inc. reported a net loss of $202,644 on netsales of $3.2 million for the third quarter ended Sept. 30, 2007,compared with a net loss of $179,003 on net sales of $205,331 inthe same period last year.

The increase in net sales for the three month period isattributable to the acquisition of Nutritional Specialties Inc.,d/b/a LifeTime(R) on April 5, 2007, effective March 30, 2007.

Gross profit increased to $1.3 million during the three monthsended Sept. 30, 2007, compared to gross profit of $96,660 in theprior period quarter.

Selling, general and administrative expenses for the three monthperiod ended Sept. 30, 2007, were $1.2 million, compared to$227,835 for the same period last year.

Total other expense for the three months ended Sept. 30, 2007, was$346,390, compared to $47,828 for the same period last year.Interest expense increased to $199,624 from $47,828 in the 2006quarter.

There is no income tax benefit recorded because any potentialbenefit of the operating loss carry forwards has been equallyoffset by an increase in the valuation allowance on the deferredincome tax asset.

Net sales for the nine months ended Sept. 30, 2007, were$6.6 million, compared to $900,026 for the same period last year,an increase of $5.7 million. Net loss for the nine months endedSept. 30, 2007, was $892,840 as compared to a net loss of $393,388for the same period last year.

At Sept. 30, 2007, the company's consolidated balance sheet showed$13.9 million in total assets, $9.6 million in total liabilities,and $4.3 million in total stockholders' equity.

The company's consolidated balance sheet at Sept. 30, 2007,moreover showed strained liquidity with $3.6 million in totalcurrent assets available to pay $4.1 million in total currentliabilities.

On April 5, 2007, effective March 30, 2007, the company acquired,substantially all of the assets, and assumed certain liabilities,of Nutritional Specialties Inc., d/b/a LifeTime(R) or LifeTime(R)Vitamins, a California corporation, for a purchase price ofapproximately $11,100,000.

Going Concern Doubt

Epstein, Weber & Conover PLC, in Scottsdale, Ariz., expressedsubstantial doubt about Baywood International Inc.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements as of Dec. 31, 2006. Theauditing firm reported that the company has experienced materialoperating losses and had a net working capital deficiency of$3,025,365 at Dec. 31, 2006.

About Baywood International

Headquartered in Scottsdale, Ariz., Baywood International Inc.(OTC BB BYWD.OB) -- http://www.bywd.com/-- is a nutraceutical company specializing in the development, marketing anddistribution of its own proprietary brands under the names BAYWOODPURECHOICE(R), BAYWOOD SOLUTIONS(R), Complete La Femme(R), andBAYWOOD EVOLUTION(TM).

BLINK LOGIC: Posts Net Loss of $1.5 Million in Third Quarter------------------------------------------------------------Blink Logic Inc. reported a net loss of $1.5 million on revenuesof $74,795 for the third quarter ended Sept. 30, 2007, comparedwith a net loss of $360,040 on revenues of $172,064 in the sameperiod last year.

The decrease in revenues results primarily from lower servicesrevenue as a result of decreased revenues from a significantcustomer in 2007 compared to 2006.

General and administrative expenses for the three months endedSept. 30, 2007, were $451,389 compared to $163,451 for the threemonths ended Sept. 30, 2006.

Interest expense increased from $55,928 for the three months endedSept. 30, 2006, to $565,760 for the three months ended Sept. 30,2007. This increase results primarily from the impact of theintrinsic value of beneficial conversion features on promissorynotes and accretion of promissory notes to face value onconversion of promissory notes to common stock in Sept. 2007.

At Sept. 30, 2007, the company's consolidated balance sheet showed$3.9 million in total assets, $2.3 million in total liabilities,and $1.6 million in total stockholders' equity.

KPMG LLP, in Ottawa, Canada, expressed substantial doubt aboutDataJungle Software Inc. nka. Blink Logic Inc.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements for the years ended Dec. 31,2006, and 2005. The auditing firm reported that the company hasnegative working capital at Dec. 31, 2006, and has incurredrecurring losses, as well as recurring negative cash flow fromoperating activities. The auditing firm added that the companyhas an accumulated deficit and its economic viability is dependenton its ability to generate additional sales and financeoperational expenses.

BNC MORTGAGE: Moody's Cuts Ratings on Two Classes to B3-------------------------------------------------------Moody's Investors Service has downgraded the ratings of 18tranches issued by BNC Mortgage Loan Trust in 2007. Additionallytwo downgraded tranches remain on review for possible furtherdowngrade. The collateral backing these classes consists ofprimarily first lien, fixed and adjustable-rate, subprime mortgageloans.

In its analysis, Moody's has combined its published methodologyupdates as of July 13, 2007 to the non delinquent portion of thetransactions. Collateral backing these transactions is alsoexperiencing higher than anticipated rates of delinquency,foreclosure, and REO relative to credit enhancement levels.

BOMBAY CO: Court Sets January 21 as Claims Bar Date---------------------------------------------------The United States Bankruptcy Court for the Northern District ofTexas set Jan. 21, 2008, as the last day within which creditors ofBombay Co. and its debtor-affiliates may file their proofs ofclaim.

Governmental units may file their proofs of claim on or beforeMarch 18, 2008.

Basedc in Fort Worth, Texas, The Bombay Company Inc., (OTCBulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall decorand furniture through 384 retail outlets and the Internet in theU.S. and internationally, including Cayman Islands.

The company and five of its debtor-affiliates filed for Chapter 11protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No.07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T.Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP,represent the Debtors. Attorneys at Cooley, Godward, Kronish LLPact as counsel for the Official Committee of Unsecured Creditors.Forshey & Prostok LLP is the Committee's local counsel.

As of May 5, 2007, the Debtors listed total assets of $239,400,000and total debts of $173,400,000.

BROADVIEW NETWORKS: IPO Cues Moody's to Hold B3 Corporate Rating----------------------------------------------------------------Moody's Investors Service has affirmed Broadview NetworksHoldings, Inc.'s B3 corporate family rating and the stable outlookfollowing the Company's announcement that it has filed for aninitial public offering of its common stock.

If the Company successfully completes the IPO, Moody's believesthat Broadview's credit profile would be improved via theelimination of the 50% debt attribution of the Series A and Bpreferred stock (about $60 million as per Moody's adjustments forhybrid instruments). Moreover, according to Moody's VicePresident and Senior Analyst, Gerald Granovsky, "the Company couldgenerate upward rating momentum if it achieves the targetedsynergies in the ATX and InfoHighway acquisitions."

However, the uncertainty of successfully consummating the IPO in adifficult capital markets environment and the intensifyingcompetitive pressures temper the prospect to change the Company'sratings or the outlook at this time.

The future ratings and the ratings outlook will incorporate theCompany's leverage profile in light of organic or capital marketsdeleveraging, the potential for future debt-driven acquisitions,and a review of the company's performance and integrationprogress.

Broadview plans to use the proceeds from the IPO for generalcorporate purposes, to fund capital expenditures or for futureacquisitions. The Company may also exercise the clawbackprovision to redeem up to 35% of its outstanding 11-3/8% notes,due 2012. In conjunction with the IPO, Broadview will convert allpreferred stock to common, and the shareholders will sell aportion of their common holdings in the IPO. The Company will notreceive any proceeds from the sale of stock held by its existingshareholders.

Broadview, headquartered in Rye Brook, New York, is a CLEC servingover 800,000 access line equivalents.

In its analysis, Moody's has combined its published methodologyupdates as of July 13, 2007 to the non delinquent portion of thetransactions. Collateral backing these transactions is alsoexperiencing higher than anticipated rates of delinquency,foreclosure, and REO relative to credit enhancement levels.

It would be the Chrysler's second consecutive year of losses ifMr. Nardelli's forecast is right, according to the AssociatedPress citing an unnamed source. The company reported a loss of$618 million in 2006 but disclosed earnings of $1.8 billion in2005.

As reported in the Troubled Company Reporter on Dec. 3, 2007,Mr. Landry declared that Chrysler aniticipates a loss of$1 billion this year in costs. He told Saint Mary's Universitystudents in Halifax, Nova Scotia, that Chrysler's 2007 revenue isexpected at $64 billion and costs at about $65 billion. Mr.Landry recounted Chrysler's business aim to recover costs nextyear and to yield a huge profit in 2009 and 2010, slashing about 8models from its lineup.

As reported in the Troubled Company Reporter on Nov. 12, 2007,Standard & Poor's Ratings Services affirmed its 'B' corporatecredit rating on Chrysler LLC and DaimlerChrysler FinancialServices Americas LLC and removed it from CreditWatch withpositive implications, where it was placed Sept. 26, 2007. Theoutlook is negative.

CHRYSLER LLC: Expected $1 Bil. Loss Spurs January Production Cuts-----------------------------------------------------------------Chrysler LLC plans to temporarily cease car production in itsplants in Warren, Michigan and Fenton, Missouri, before Christmas,postponing its opening until the whole month of January, accordingto various sources. The move is due to due to the company'sexpected $1 billion loss, slow pickup sales and prevention of anoversupply.

Sources say that the company will also shutter a truck plant inMexico for two weeks in January.

As reported in the Troubled Company Reporter on Dec. 4, 2007,Chrysler dealers delivered 161,088 new vehicles to U.S. customersin November 2007, down 2% compared with a year ago.

As reported in the Troubled Company Reporter on Nov. 12, 2007,Standard & Poor's Ratings Services affirmed its 'B' corporatecredit rating on Chrysler LLC and DaimlerChrysler FinancialServices Americas LLC and removed it from CreditWatch withpositive implications, where it was placed Sept. 26, 2007. Theoutlook is negative.

The mortgage loans consist of 12-30-year fixed-rate mortgagesextended to prime borrowers and are secured by one- to four-familyresidential properties. As of the November distribution date, thetransactions are 13 to 28 months seasoned and the pool factors(current mortgage loan principal outstanding as a percentage ofthe initial pool) range from 82% (2005-4) to 88% (2006-1).

The affirmations reflect a stable relationship between creditenhancement and future loss expectations and affect approximately$2.457 billion of outstanding certificates.

COMCAST CORP: RGU Additions to Fall Short of Previous Guidance--------------------------------------------------------------Comcast Corporation disclosed Tuesday that Michael Angelakis, co-chief financial officer, will participate in the 35th Annual UBSGlobal Media & Communications Conference on Dec. 5, 2007, at whichtime he will discuss, among other items, the company's currentoutlook for 2007.

Reflecting an increasingly challenging economic and competitiveenvironment and consistent with trends across the sector, RevenueGenerating Units are now expected to increase by approximately6 million, versus previous guidance of approximately 6.5 millionadditions. This represents a significant increase compared to the5 million RGUs added in 2006. This RGU growth is expected tocontribute to cable revenue growth for 2007 of approximately 11%,compared to previous guidance of at least 12%, cable operatingcash flow growth, presented on a pro forma basis, of approximately13% as compared to previous guidance of at least 14%, andconsolidated operating cash flow growth of approximately 13% ascompared to previous guidance of at least 13%.

Reflecting the impact of all the aforementioned items, Comcast'sconsolidated free cash flow is expected to be approximately 80% of2006, compared to previous estimates of 2007 consolidated freecash flow of at least 90% of 2006.

With the current outlook of 6 million RGU additions, 11% cablerevenue growth, and 13% cable operating cash flow growth, 2007will be a year of record RGU additions and solid financialperformance, with the company enjoying its 8th consecutive year ofdouble digit cable operating cash flow growth.

About Comcast Corporation

Based in Philadelphia, Comcast Corporation (Nasdaq: CMCSA, CMCSK)-- http://www.comcast.com/-- is a provider of cable, entertainment and communications products and services. With 24.2million cable customers, 12.9 million high-speed Internetcustomers, and 4.1 million voice customers, Comcast is principallyinvolved in the development, management and operation of broadbandcable systems and in the delivery of programming content.

Moody's Investors Service assigned a Ba1 rating to ComcastCorporation's preferred stock in April 2005.

CVR ENERGY: Earns $13.4 Million in Third Quarter of 2007--------------------------------------------------------CVR Energy, Inc. reported third quarter 2007 net income of$13.4 million, compared to net income of $129.0 million for thethird quarter of 2006.

Net loss for the nine months ended Sept. 30, 2007, was$40.9 million compared to net income of $170.8 million forthe same period in 2006.

Third quarter operating income was $38.7 million in 2007, comparedwith $52.1 million for the same period in 2006, and for the ninemonths ended Sept. 30, 2007, operating income was $162.5 millioncompared with $267.0 million in the same period of 2006.

"Our refinery and nitrogen fertilizer facilities in Coffeyville,Kansas, recovered rapidly from the devastating floods which sweptacross the area beginning June 30, and in fact, our refinery isnow operating significantly above pre-flood rates," said JackLipinski, chief executive officer. "In addition, the nitrogenfertilizer plant, which was less affected by the flood andtherefore lost only 18 days production, continues to perform well.It is the lowest-cost nitrogen fertilizer producer in NorthAmerica."

"CVR Energy's rapid recovery from the flood is the direct resultof a committed effort by our employees and the dedication of ourcontractors and suppliers," he said. "Our return to normaloperations so quickly demonstrates the phenomenal talents in thisorganization."

At Sept. 30, 2007, the company's balance sheet showed total assetsof $1.8 billion and total liabilities of $1.0 billion, resultingin a stockholders' equity of $34.5 million. Equity, as of Sept.30, 2006, was $303.1 million.

IPO

On Oct. 26, 2007, the company consummated an initial publicoffering of 23 million shares of its common stock. The initialpublic offering price was $19 per share. The net proceeds to CVREnergy from the sale of common stock were $408.5 million beforeoffering costs of approximately $11.4 million. The net proceedswere used to repay $380 million of debt, including $50 million ofoutstanding indebtedness under CVR Energy's revolving creditfacility. The variance from operating income guidance provided inCVR Energy's IPO prospectus results from accelerating therecognition of expenses associated with the flood and relatedcrude oil discharge into the third quarter. These expenses arewithin the original total estimate of flood related expenditures.The company believes it is fully insured for these expenses andwill record any additional insurance proceeds as collectionbecomes more imminent.

About CVR Energy

Headquartered in Sugar Land, Texas, CVR Energy, Inc. --http://www.cvrenergy.com/-- is an independent refiner and marketer of high value transportation fuels and, through a limitedpartnership, a producer of ammonia and urea ammonia nitratefertilizers. CVR Energy's petroleum business includes a 113,500barrel per day, complex, full-coking sour crude refinery inCoffeyville, Kansas. In addition, CVR Energy's supportingbusinesses include a crude oil gathering system serving centralKansas, northern Oklahoma and southwest Nebraska; storage andterminal facilities for asphalt and refined fuels in Phillipsburg,Kansas; and a rack marketing division supplying product tocustomers through tanker trucks and at throughput terminals.

The ratings are restrained by sharply reduced 2007 free cash flowdue to substantial downtime; expected more moderate fourth quarter2007 and 2008 sector refining margins; still high leverage for asingle standalone refinery operating in a capital intensive,volatile, commodity business; higher expected leverage in 2008with outlays well in excess of cash flow; substantial cashconsumed this quarter to rebuild working capital; a large cashobligation to CVR's hedge counter party (J. Aron); and a degree ofuncertainty concerning CVR's full eventual environmental andliability settlements. A further restraint is that CVR mayeventually convert its fertilizer business to a Master LimitedPartnership.

CVR will continue to fund substantial growth capital spendingthrough 2009. Moody's anticipates that CVR's debt levels willsurpass $600 million during 2008 before potentially falling in2009, including funding a $123.7 million payment due to J. Aron inthird quarter 2008. To the degree fourth quarter 2007 marginsmoderate, leverage would be higher as well.

CVR's $397 million of net IPO proceeds repaid approximately $380million of debt, including $50 million of bank revolver debt,taking pro-forma adjusted Sept. 30, 2007 balance sheet debt toapproximately $491 million excluding $123.7 million of CVR'sdeferred hedge obligations to its counterparty that accumulatedwith the refinery flood downtime.

CVR's ratings were downgraded to a Caa1 Corporate Family Rating inearly August 2007 after its Coffeyville refinery incurred anemergency shut down due to a record flash flood of the nearbyVerdigris River. CVR reported that major process units andequipment were not directly impacted by the flood but that damageto hundreds of individually minor, but systemically vital, motorsand pumps was extensive. The incident also led to a spill ofapproximately 71,000 gallons of petroleum products into theadjacent community and river system and further delayed an IPOthat had been essential for CVR to retain its ratings.

Through the end of September 2007, including repairs,environmental settlements, and liability settlements, CVR incurredapproximately $131 million of new costs associated with the floodand currently expects that number to increase to as much as $160million. That figure excludes lost profit and the very largehedge obligation to J. Aron. CVR believes a substantial portionof the costs will eventually be reimbursed by insurance and hasreceived $20 million of insurance proceeds to date.

CVR's 2007 earnings and cash flow have been curtailed due toscheduled first quarter turnaround, the longer than expecteddowntime of that turnaround, complications arising with acoinciding major expansion program, the downtime associated withthe Verdigris flood, and costs associated with its downtime andflood liabilities. For the nine months ending September 30, 2007,CVR reported $157 million of adjusted EBITDA before unrealizedhedging gains and losses, down from $280 million in the same 2006period. In Moody's view, given the macro and refining sectormarket forces at work, the sector has already seen its cyclicalpeaks and refining margins will moderate during 2008.

The B2 first secured ratings apply to CVR's $775 million seniorfirst lien secured term loan and $150 million senior first liensecured revolving credit facility. Under Moody's Loss GivenDefault Methodology, CVR's B3 Probability of Default Rating isbelow the B2 Corporate Family Rating due to CVR's all-bank pari-passu first secured capital structure.

CVR Energy, Inc. is headquartered in Sugar Land, Texas.

DB KEY: Can Hire Fisher to Auction Key Largo Property-----------------------------------------------------D.B. Key Largo LLC obtained approval from the U.S. BankruptcyCourt for the Southern District of Florida to employ FisherAuction Co. Inc. as its auctioneer.

The objection of Philrich of Key Largo LLC, secured creditor, tothe retention of Fisher was denied by the Court.

Fisher's compensation as auctioneer will be based upon:

(i) a 2.5% commission with an additional 1.5% commission to any cooperating buyer's broker;

(ii) an additional 0.5% commission for the auctioneer if there is no cooperating buyer's broker; and

(iii) a $7,000 flat fee if the stalking horse bid submitted by Philrich is the only bid received at the auction.

The Court authorized the auctioneer to spend a maximum of $53,000for out-of-pocket expenses to market the Debtor's property.

The auction of the property is scheduled for Feb. 1, 2008,extendable for cause.

As reported in the Troubled Company Reporter on Oct. 26, 2007,Fisher will assist the Debtor in the proposed auction of the MultiFamily Development Site at Mile Marker 104 in Key Largo, Florida.The Debtor had proposed an "all cash" sale of the property atclosing with no post contract due diligence period. The propertyhas a purported value of $10 million.

Fisher had proposed a $62,360 pre-sale budget for marketing andadvertising expenses. In the event the Debtor cancels the sale,the Debtor agrees to reimburse the auctioneer reasonable expenses,plus 10% overhead costs. Hence, the Debtor will pay Fisher amaximum amount of $68,596 for costs and expenses.

Coconut Grove, Florida-based D.B. Key Largo LLC owns and managesreal estate. The company filed for chapter 11 bankruptcyprotection on Sept. 28, 2007 (Bankr. S.D. Fl. Case No. 07-18127).The U.S. Trustee has not appointed members to the OfficialCommittee of Unsecured Creditors in this case. The Debtor'sschedules disclosed total assets of $10,382,165 and totalliabilities of $14,090,922.

The Troubled Company Reporter said on Oct. 26, 2007, that prior tothe bankruptcy filing, the firm received a $20,000 retainer forits representation, along with the advance payment of a $1,039filing fee for the case. The retainer was paid by M.A.M.C Inc, aservicing agent acting on behalf of the various individual lenderswho collectively hold the second mortgage on the Debtor's realproperty.

Lisa M. Schiller, Esq., of Rice Pugatch however, had explained toAlan Goldberg, M.A.M.C.'s chief restructuring officer, thatdespite its payment of the retainer, Rice Pugatch solely andstrictly represents the Debtor. Ms. Schiller also told Mr.Goldberg that M.A.M.C. will have to hire a separate andindependent counsel should they elect to do so. As such, Mr.Goldberg has advised Ms. Schiller that he agrees to the foregoing.

Ms. Schiller assured the Court that her firm does not representany interest adverse to the Debtor.

Coconut Grove, Florida-based D.B. Key Largo LLC owns and managesreal estate. The company filed for chapter 11 bankruptcyprotection on Sept. 28, 2007 (Bankr. S.D. Fl. Case No. 07-18127).The U.S. Trustee has not appointed members to the OfficialCommittee of Unsecured Creditors in this case. The Debtor'sschedules disclosed total assets of $10,382,165 and totalliabilities of $14,090,922.

DB KEY: Case Dismissal Hearing Continued on December 26-------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Floridascheduled on Dec. 26, 2007, at 1:30 p.m., a continued hearing ofthe request of Philrich of Key Largo LLC, secured creditor, todismiss D.B. Key Largo LLC's bankruptcy case.

Philrich had informed the Court that the Debtor rushed to filechapter 11 case with the idea of "staving off" a foreclosure saleon a property securing the Philrich Mortgage Obligation.

The real property securing the Philrich Mortgage Obligation islocated at Mile Marker 104 in Key Largo, Florida and was intendedto be developed by the Debtor as a condominium-hotel facility.

Philrich had related that on June 16, 2006, the Debtor executed acertain promissory note and a mortgage securing payment of thenote to TIB Bank of the Keys in the original principal amount of$6,234,000. Subsequently, the Debtor defaulted under thatobligation by failing to pay it in full on its maturity date onApril 1, 2007.

The Debtor owes Phirich the sum of $5,982,522 on the principal ofthe Philrich Mortgage Obligation, with a default interest fromApril 1, 2007 to present of 18% per annum, plus other fees.

Kluger, Peretz, Kaplan & Berlin, PL represents Philrich.

Coconut Grove, Florida-based D.B. Key Largo LLC owns and managesreal estate. The company filed for chapter 11 bankruptcyprotection on Sept. 28, 2007 (Bankr. S.D. Fl. Case No. 07-18127).The U.S. Trustee has not appointed members to the OfficialCommittee of Unsecured Creditors in this case. The Debtor'sschedules disclosed total assets of $10,382,165 and totalliabilities of $14,090,922.

DELTA FINANCIAL: Failing Angelo Gordon Deal May Lead to Bankruptcy------------------------------------------------------------------Delta Financial Corporation provided an update Thursday of itsfinancial condition and current plans, including a possible filingof chapter 11 bankruptcy and an event of default under itswarehouse facilities.

The company said on Nov. 15, 2007, that it had entered into aletter of intent with an affiliate of Angelo, Gordon & Co. Theletter of intent contemplated, among other things, the issuance ofsenior notes and common stock to that affiliate of Angelo Gordon.

Also on Nov. 15, 2007, the company entered into a standstillagreement with three of its warehouse providers. Each of theseagreements was subject to several varying conditions, includingthe company's pricing a securitization of mortgage loans.

The company has been unable to complete the securitizationtransaction upon satisfactory terms.

Warehouse Facilities Default

Consequently, on Dec. 5, 2007, the company received reservation ofrights notices from its warehouse lenders indicating that eventsof default have occurred under the warehouse facilities and thestandstill agreement. Under these circumstances, the company'sfinancial obligations under the agreements may be accelerated, andit may be subject to substantial payment obligations, as well asincurring cross-default claims from its other creditors.

Likely Bankruptcy

The company said it does not expect to be able to consummate thetransaction with Angelo Gordon.

Furthermore, the company does not believe that it will be able tocontinue as a going concern.

The company presently intends to file shortly for protection underthe federal bankruptcy code.

The company intends to continue to operate its business as a"debtor-in-possession" as provided under the bankruptcy code;however, it intends to suspend taking new mortgage loanapplications until further notice.

The company is currently conducting discussions with entities thatare potentially interested in acquiring its assets and operationsin connection with a bankruptcy proceeding. However, due to thepreliminary nature of these discussions, no assurances can begiven that the company will complete any transaction.

Angelo Gordon Deal

Delta Financial stated in a Securities and Exchange filing inmid-November that it had entered into a letter of intent, datedNov. 15, 2007, with an affiliate of Angelo, Gordon & Co., one ofthe company's principal stockholders. The letter of intentcontemplates an aggregate financing of $100.0 million, includingamounts outstanding under the residual financing facilityestablished in August 2007.

Once the proposed transaction is completed, an affiliate of AngeloGordon, AG Special Situation Corp., will purchase from the companya new series of 10% Senior Secured Notes. The maturity of thenotes will be three years after issuance. The initial aggregateprincipal amount of the notes will be equal $100.0 million, minusthe principal amount outstanding under the August 2007 residualfinancing facility as of the issuance date of the notes.

The company currently estimates that if the transaction closes inDecember 2007, the principal amount will be between $45 millionand $49 million, such that the initial principal amount of the 10%Senior Secured Notes will be between $51 million and $55 million.Interest on the notes is expected to be payable on a payment-in-kind basis until the first anniversary of the closing date.

In connection with the proposed note issuance, the company willissue to AGSSC 40 million newly issued shares of common stock asadditional consideration, which may be initially issued in theform of convertible preferred stock or convertible debtsecurities. The company will also reduce the exercise price ofAngelo Gordon's warrants to purchase 10.0 million shares of commonstock to $1.00 per share. The warrants remain due to expire inFebruary 2009.

The transaction is subject to the completion of Angelo Gordon'sdue diligence procedures, and the negotiation and execution ofdefinitive transaction agreements.

The proposed Senior Secured Notes will be secured by a securityinterest in all of the company's securitization residuals, BIOcertificates and excess cashflow certificates as of the closingdate, together with any other assets of the company as the partieswill agree upon in the definitive transaction documents.

The Senior Secured Notes are repayable at the option of thecompany, and are subject to several events of default.

If the transaction closes, the company's August 2007 residualfinancing facility will be extended to the day prior to the firstanniversary of the closing date of the Senior Secured Notes (in orabout December 2008).

If the transaction closes as planned, Angelo Gordon will be thebeneficial owner of about 61.4% of the company's outstandingcommon stock, and approximately 66.5% of the company's outstandingstock if it exercises all of its warrants. Upon the closing of thetransaction, subject to certain limitations intended to complywith certain state lending regulations, AGSSC will obtain theright to elect a majority of the company's Board of Directors.AGSSC will also obtain registration rights with respect to the newshares of common stock, and preemptive rights with respect to theissuance of new shares of the company's capital stock.

The company has agreed that, until Dec. 15, 2007, it will not toenter into any "Competing Transaction". However, the company hasthe right to terminate the letter of intent if it receives a"Superior Proposal".

Arrangements with Warehouse Providers

Contemporaneously with signing the letter of intent with AGSSC,the company entered into an agreement with three of its warehouseproviders to facilitate the completion of the proposedtransactions with AGSSC.

These warehouse providers have agreed, until 11:59 P.M. onDec. 14, 2007, (1) not to make any margin calls, or reduce theiradvance rates, on the loans currently collateralizing theirwarehouse lines and (2) to continue to fund the company's loanoriginations at prescribed advance rates. The agreement of theseinstitutions is subject to several conditions, including:

-- the company's letter of intent with AGSSC must remain in full force and effect;

-- the company must complete certain whole-loan sale transactions and price a securitization of mortgage loans during this period; and

-- the company is subject to certain financial covenants.

Under these arrangements, and in light of market conditions, thecompany expected to significantly limit its originations duringthis period and until market conditions improve. In light of thecompany's significantly reduced loan production, it planned toterminate a warehouse facility that it has with a fourth financialinstitution, under which the company does not currently have anyoutstanding indebtedness.

The company said it intends to close the transactions contemplatedby the letter of intent with AGSSC on or prior to Dec. 14, 2007.At that time, under the arrangements with the warehouse providers,the company's existing warehouse facilities will expire. Thecompany and these three financial institutions intend to negotiateto renew or replace the warehouse facilities with new facilitiestotaling $200 million in the aggregate. However, the company saidthere can be no assurance that the company will succeed inobtaining such facilities.

The affirmations reflect a stable relationship between creditenhancement and expected losses, and affect approximately $316.98million in outstanding certificates. The downgrades reflectdeterioration in the relationship between CE and expected losses,and affect approximately $4.24 million in outstandingcertificates. In addition, approximately $2.82 million is placedon Rating Watch Negative

Since the last review in June 2007, the 60+ delinquencies haveincreased from 2.21% to 3.02% of the current balance. Theexpected losses, as a result, since then have increased creatingsignificant downgrade pressure on the subordinate bonds. Thelowest rated class, B-4, has a CE level of 0.39%. Group 1 was notrated by Fitch.

Sebastian River is suing under the civil section of the RacketeerInfluenced and Corrupt Organizations Act. Several individualshareholders have joined the company as plaintiffs.

In addition, the plaintiffs allege that E*trade illegally frozeshareholders accounts, not allowing them to buy or sell nor movestock or cash out of their accounts. The suit seeks return of allassets confiscated by E*Trade, including cash and stock.Sebastian River is seeking actual and punitive damages for loss ofmarket value and for loss of business opportunity.

"You often hear about these large brokerage firms manipulatingstock of small public companies for their own financial gain,"Daniel Duffy, Sebastian River's CEO, stated. "The magnitude ofE*Trade and its employees' conduct to artificially knock down ourmarket cap is egregious and absolutely astounding. The reallyamazing part of this whole process is the fact that there issubstantial documentation to prove all of the allegations of ourlawsuit."

On Aug. 8, 2007, the company declared an Iraq Dinar dividend toall shareholders of record on Sept. 14, 2007, because of the actsof E*Trade the company can not get an actual count of record dateshareholders. As soon as this matter is concluded, SebastianRiver Holding's Inc. will honor the dividend, even if the rate ofthe dinar is one dinar for one US dollar.

As reported in the Troubled Company Reporter on Dec. 4, 2007,Moody's Investors Service lowered E*Trade Financial Corporation'slong-term senior debt rating to Ba3 from Ba2. The outlook for thelong-term rating is negative.

EL POLLO: Dispute Judgment Prompts Moody's Ratings Review---------------------------------------------------------Moody's Investors Service placed El Pollo Loco, Inc.'s B3corporate family rating and all its other long term debt ratingsunder review for possible downgrade and lowered the speculativegrade liquidity rating to SGL-4 from SGL-3, following anunfavorable final judgment entered in a trademark dispute againstthe company. The rating action reflects Moody's concern aboutstrains on the company's liquidity and its ability to pay arelatively large penalty, or to post a bond.

The judgment was entered in a U.S. District Court in Texas onNov. 30, 2007, with regard to a trademark dispute filed by ElPollo Loco -- Mexico, an unrelated entity controlled by founder ofthe first El Pollo Loco restaurant in Mexico and the US, for ElPollo Inc.'s alleged breach of contract in failing to develop newrestaurants in Mexico.

The Court awarded damages in the amount of $20.3 million plusattorneys' fees, in addition to directing the company to returncertain intellectual property to Mexico, among other things. ElPollo stated that it would initiate the appeal process through ahigher court in which case, collateral in the form of a letter ofcredit needs to be posted.

"If El Pollo were to appeal, they would need to find alternativefinancing resources to post the bond besides using its existingcredit facilities, and quickly," commented Moody's analyst, JohnZhao, "the remaining availability under its L/C facility and cashflow from operations won't be sufficient to cover the collateralrequirement at this time." As of September 30, 2007, the companyhad an approximately $7.4 million availability of Letter of Creditunder the total $15 million L/C sub-limit.

Moody's review will focus on the company's ability to secure afinancing for the penalty payment or bond posting while staying incompliance with its financial covenants. Moody's will also assessthe conditions on the alternative funding and its potential effecton the company's operational and financial condition if thecompany were able to obtain the funding.

El Pollo Loco Inc, headquartered in Irvine, California, is aleading quick-service restaurant chain specializing in flame-grilled chicken and other Mexican-inspired entrees. The companyoperates or franchises approximately 341 restaurants primarilyaround Los Angeles and throughout Southwestern US, and generatedtotal revenues of approximately $260 million in FY2006.

Pool losses over the last few months have eroded creditenhancement available to all certificates of this transaction. Inaddition, between the July 25 and November 25 reporting dates, the90+ day delinquency pipeline has doubled from approximately $16million to $32 million as borrowers continue to default. Theactions reflect Moody's expectation that the significantdelinquency pipeline will have a further negative impact on thecredit support for all certificates.

The collateral in the aforementioned transactions consists offixed-rate manufactured housing contracts. As of the Novemberdistribution date, the transactions are seasoned from a range of126 to 132 months, and the pool factors (current contractprincipal outstanding as a percentage of the initial pool) rangefrom approximately 16% (series 1996-1) to 25% (series 1997-2).

First Federal Savings and Loans Association converted its charterto a national bank charter and changed its name to Signal Bank,N.A. In order to achieve consistency among affiliated companies,the name of FirstFed Corp. (the special purpose corporation usedto facilitate the securitization of manufactured housingcontracts) was changed to Signal Securitization Corp. In December2003, Clayton Homes Inc. assumed the servicing responsibilitiesfor the FirstFed portfolio.

When estimating future collateral losses for the aforementionedtransactions, Fitch assumed default rates, prepayment rates andloss severities to remain relatively consistent with currentlevels. Based on these assumptions, Fitch expects losses on theremaining pool balance of approximately 7.43% for series 1996-1transaction, 10.26% for series 1997-1 transaction and 8.84% forseries 1997-2 transaction. When included with losses alreadyincurred, total cumulative losses as a percentage of the initialpool balance are expected to be approximately 16.67% for series1996-1 transaction, 13.76% for series 1997-1 transaction and17.06% for series 1997-2 transaction.

Of particular note, the transactions reviewed pay principal due tosenior bonds prior to paying interest due to subordinate bonds.Higher than expected losses have caused significant interestshortfalls to various subordinate bonds in the transactions.While the structures allow for interest shortfalls to be recoveredin the future in the event of sufficient excess spread, Fitchassessed the likelihood of the bondholder receiving all interestdue when determining the bond's credit rating.

FORD MOTOR: Mulls Production Cuts Due to Low November Sales-----------------------------------------------------------Ford Motor Company and General Motors Corp. disclosed that due tolow November sales, the carmakers intends to slash vehicleproduction in the first quarter of 2008, various sources report.

Ford plans a 7% car production decrease in the first quarter,expecting to produce only 685,000 vehicles, while GM anticipates aproduction of 950,000 vehicles from January through March, down11% from the same period in 2007, Nick Bunkley of The New YorkTimes relates.

As reported in the Troubled Company Reporter on Dec. 4, 2007, dueto continued growth in crossover sales and increased demand forhybrids, fuel-efficient cars and Ford's industry-exclusive SYNCin-car connectivity technology, Ford sales in November totaled182,951, up 0.4% versus a year ago. November marked the firstsales increase following 12 months of declines.

According to the Associated Press, analysts anticipate low annualsales in 2008, a drop in U.S. light vehicle sales to 3% to 15.6million units, a record low since 1998.

The company has operations in Japan in the Asia Pacific region.In Europe, the company maintains a presence in Sweden, and theUnited Kingdom. The company also distributes its brands invarious Latin American regions, including Argentina and Brazil.

* * *

As reported in the Troubled Company Reporter on Nov. 19, 2007,Moody's Investors Service affirmed the long-term ratings of FordMotor Company (B3 Corporate Family Rating, Ba3 senior secured,Caa1 senior unsecured, and B3 probability of default), but changedthe rating outlook to Stable from Negative and raised thecompany's Speculative Grade Liquidity rating to SGL-1 from SGL-3.Moody's also affirmed Ford Motor Credit Company's B1 seniorunsecured rating, and changed the outlook to Stable from Negative.These rating actions follow Ford's announcement of the details ofthe newly ratified four-year labor agreement with the UAW.

FRESENIUS MEDICAL: Acquires Renal Solutions for $190 Million------------------------------------------------------------Fresenius Medical Care AG & Co. KGaA has acquired Renal Solutions,Inc. for total consideration of up to $190 million, consisting of$100 million at closing, $60 million after the first year, and upto $30 million in milestone payments over the next three years.RSI had approximately $10 million of net debt outstanding atclosing.

RSI is currently commercializing the Allient Sorbent HemodialysisSystem, which is returning sorbent-based technology to thedialysis field. The SORB cartridge has a long market history inhemodialysis with over 6 million cartridges sold. As theinnovator in the SORB technology field, RSI holds key patents andother intellectual property worldwide related to the SORBtechnology.

The sorbent technology purifies tap water to dialysate quality andallows dialysate to be regenerated. This reduces the water volumerequirement for a typical hemodialysis treatment from 120liters/37 gallons of reverse osmosis water to just 6 liters/ 1.5gallons of drinking water per treatment.

The combination of Fresenius Medical Care's leading hemodialysistechnology and the SORB technology will provide a platform forsuperior home products and therapies. Furthermore, thesignificant reduction of dialysate through SORB technology is onemajor step towards miniaturization -- a pre-requisite for thewearable kidney concept which could benefit certain patients andcomplement clinical-based therapy.

Fresenius Medical Care sees the current market size of the HomeTherapy Market (Peritoneal Dialysis and Home Hemodialysis) atabout $2 billion representing approximately 11% of the overallworldwide dialysis market. The company believes the Home Therapymarket has the potential to grow to $4 billion within the next 10years. Fresenius Medical Care has a market share in this marketsegment of approximately 30%. Home hemodialysis has been a nichemarket for many years but with growing attention in recent past.With increased access to adequate therapy, the company projectsthe number of HHD patients in North America could grow from about0.5% at the end of 2006 to approximately 4% of the patientpopulation in the next 10 years.

"The acquisition of RSI is an important step to advance thetechnology required for strong future growth in this field," Dr.Ben Lipps, Fresenius Medical Care CEO, said. "The combinationoffers us the long-term opportunity to extend our leadership tohome and acute dialysis products. Furthermore, by combining ourequipment and membrane technology with the SORB technology, we canprovide innovative solutions in the future such as a possiblewearable kidney. With this acquisition, Fresenius Medical Careexpects to increase its annual R&D spending by approximately US$10million starting in 2008. Our mid-term financial targets for theyears 2007 through 2010 remain unchanged."

GENERAL MOTORS: Mulls Production Cuts Due to Low November Sales---------------------------------------------------------------General Motors Corp. and Ford Motor Company disclosed that due tolow November sales, the carmakers intends to slash vehicleproduction in the first quarter of 2008, various sources report.

GM said earlier this week that to avoid a deluge of inventory, itwill shutter three pickup truck plants for two weeks in January.Aside from that, GM plants will also be closed over the holiday,according to Josee Valcourt, Terry Kosdrosky and Mike Spector ofthe Wall Street Journal.

GM anticipates a production of 950,000 vehicles from Januarythrough March, down 11% from the same period in 2007, while Fordplans a 7% car production decrease in the first quarter, expectingto produce only 685,000 vehicles, Nick Bunkley of The New YorkTimes relates.

As reported in the Troubled Company Reporter on Dec. 4, 2007,GM dealers in the U.S. delivered 263,654 vehicles in November,down 11%, after three consecutive monthly increases, compared witha year ago, reflecting continuing reductions in daily rental salesand softening industry demand.

According to the Associated Press, analysts anticipate low annualsales in 2008, a drop in U.S. light vehicle sales to 3% to 15.6million units, a record low since 1998.

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars andtrucks in 33 countries, including the United Kingdom, Germany,France, Russia, Brazil and India. In 2006, nearly 9.1 million GMcars and trucks were sold globally under the following brands:Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is theindustry leader in vehicle safety, security and informationservices.

* * *

As reported in the Troubled Company Reporter on Nov. 9, 2007,Moody's Investors Service affirmed its rating for General MotorsCorporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1senior unsecured and SGL-1 Speculative Grade Liquidity rating) butchanged the outlook to Stable from Positive. In an environment ofweakening prospects for US auto sales GM has announced that itwill take a non-cash charge of $39 billion for the third quarterof 2007 related to establishing a valuation allowance against itsdeferred tax assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,Standard & Poor's Ratings Services affirmed its 'B' corporatecredit rating and other ratings on General Motors Corp. andremoved them from CreditWatch with positive implications, wherethey were placed Sept. 26, 2007, following agreement on the newlabor contract. The outlook is stable.

GLOBAL EPOINT: Sept. 30 Balance Sheet Upside-Down by $9.8 Million-----------------------------------------------------------------Global ePoint Inc.'s consolidated balance sheet at Sept. 30, 2007,showed $11.3 million in total assets and $21.1 million in totalliabilities, resulting in a $9.8 million total shareholders'deficit.

At Sept. 30, 2007, the company's consolidated balance sheet alsoshowed strained liquidity with $7.1 million in total currentassets available to pay $19.1 million in total currentliabilities.

The company reported a net loss of $5.4 million on sales of$302,000 for the third quarter ended Sept. 30, 2007, compared witha net loss of $3.3 million on sales of $1.1 million in thecorresponding period last year.

The decrease in revenue and in cost of goods sold in the quarterended September 2007 from the quarter ended September 2006 is dueto the closed maintenance services operations. Loss fromdiscontinued operation Loss from discontinued operations, net oftax was $3.8 million for the three months ended Sept. 30, 2007,compared with loss from discontinued operations, net of tax of$1.3 million during the three months ended Sept. 30, 2006.

Nine Month Results

Revenues for the nine months ended September 30, 2007 totaled$2.3 million compared to $4.4 million for the nine months endedSept. 30, 2006. The decrease in sales is the result of a decreasein aircraft maintenance services of $2.4 million.

Net loss increased to $16.3 million from $7.5 million during thenine months ended Sept. 30, 2006. Loss from discontinuedoperations, net of tax during the nine months ended Sept. 30,2007, was $10.5 million, versus loss from discontinued operations,net of tax of $3.3 million in the same nine month period endedSept.30, 2006.

The company closed its contract manufacturing operations in thesecond quarter of 2007. Additionally, the company discontinuedthe digital technology division operations in the third quarter of2007. These operations were discontinued to focus the company'sresources on its aviation services operation which it believes hashigher margin and growth potential.

The discontinuation of the contract manufacturing divisionresulted in an after tax charge of $2.4 million for the ninemonths ended Sept. 30, 2007, of which $1.5 million was due to theimpairment of goodwill. The discontinuation of the digitaltechnology division resulted in an after tax charge of$8.1 million for the nine months ended Sept. 30, 2007, of which$4.3 million was due to the impairment of goodwill and otherintangible assets.

In July 2007, the company agreed to the entry of a judgment in theamount of $5,292,503 in favor of the company's largest preferredstockholder, Iroquois Master Fund Ltd., in settlement of Iroquois'claim for mandatory redemption of the company's Series C andSeries E convertible preferred stock previously sold to Iroquois.The company believes that it will require a minimum of $3 millionof additional funding, in addition to any funding required toresolve the $5.2 million Iroquois judgment and the $900,000 inredemption demands of its preferred shareholders, in order to fundits ongoing and planned operations over the next 12 months. Inthe event it is unable to acquire the required financing withinthe next few months, it may be forced to seek protection under thebankruptcy laws.

Going Concern Doubt

Vasquez & Company LLP, in Los Angeles, expressed substantial doubtabout Global ePoint Inc.'s ability to continue as a going concernafter completing its audit of the company's consolidated financialstatements for the year ended Dec. 31, 2006. The auditing firmreported that the company has recurring losses, reclassified allof its preferred stock as current liability because of mandatoryredemption, and the company has negative working capital.

About Global ePoint Inc.

Headquartered in City of Industry, Calif., Global ePoint Inc.(GEPT.PK) -- http://www.globalepoint.com/-- and its subsidiaries provide digital video surveillance products, informationtechnology network, and computing solutions in the United Statesand internationally.

GOLDEN EAGLE: Posts $554,623 Net Loss in Third Quarter------------------------------------------------------Golden Eagle International Inc. reported a net loss of $554,623 on$-0- of revenues for the third quarter ended Sept. 30, 2007,compared with a net loss of $525,563 on revenues of $-0- in thesame period last year.

During the three months ended Sept. 30, 2007, and Sept. 30, 2006,the company's pilot plant at the C Zone on its Precambrianproperties was involved in batch analysis of various points withinthe C Zone gold project and produced only metallurgical quantitiesof gold that the company has reserved for analysis and that havenot resulted in revenues.

The increase in net loss was due to non-cash financing costsrelated to the issuance of Series B Preferred Stock less thereductions in exploration and development and general andadministration. Without the inclusion of financing costs, netloss would have decreased to $305,482 during the three-monthperiod ended Sept. 30, 2007, from $525,563 during the same periodin 2006.

At Sept. 30, 2007, the company's consolidated balance sheet showed$5.9 million in total assets, $826,693 in total liabilities, and$5.1 million in total stockholders' equity.

The company's consolidated balance sheet at Sept. 30, 2007, alsoshowed strained liquidity with $195,351 in total current assetsavailable to pay $602,662 in total current liabilities.

Chisholm, Bierwolf & Nilson LLC, in Bountiful, Utah, expressedsubstantial doubt about Golden Eagle International Inc.'s abilityto continue as a going concern after auditing the company'sconsolidated financial statements for the years ended Dec. 31,2006, and 2005. The auditing firm reported that the company hasnegative working capital and has incurred substantial losses sinceits inception. The company currently has no mineral productionand requires significant additional financing to satisfy itsoutstanding obligations and resume and expand mining production.In addition, the company's ability to conduct operations remainssubject to other risks, including operating in isolated regions ofBolivia and the concentration of operations in a singleundeveloped area.

About Golden Eagle

Golden Eagle International Inc. (OTC BB: MYNG.OB) --http://www.geii.com/-- is a gold and copper exploration and mining company headquartered in Salt Lake City, Utah and withoffices also in Santa Cruz, Bolivia. The company is concentratingits efforts on expanding its pilot operations into productionoperations on its gold project on the C Zone within its 136,500acres in eastern Bolivia's Precambrian Shield.

GREENBELT CT: GECC Wants Examiner to Investigate Fund Transfers---------------------------------------------------------------General Electric Capital Corporation, a major secured creditor inGreenbelt CT Imaging Center LLC's Chapter 11 case, asks the U.S.Bankruptcy Court for the District of Maryland to appoint anexaminer to investigate whether or not any of the Debtor'sassets have been improperly diverted to its sole principal.

Fraudulent Transfers to Affiliate

The Debtor had admitted that its affiliated company, Greenbelt PETImaging Center, LLC, a guarantor of GECC's financing, paid $60,000from its corporate assets to redeem the membership interest of Dr.Irwin Shafique, a minority owner of Greenbelt PET. Insofar asGreenbelt PET's un-audited balance sheet at Nov. 30, 2006,reflected negative partners' capital of $471,316, it seems clearthat Greenbelt PET was clearly insolvent when the $60,000 transferwas made, especially once Greenbelt PET's contingent liability onan unlimited corporate guarantee of more than $7.5 million in GECCfinancing to the Debtor is factored in, says GECC. Yet, GECCnotes, the Debtor has done nothing during its bankruptcy torecover this apparent fraudulent conveyance.

Unaccounted Board Meetings

GECC relates that, at the first meeting of creditors, it inquiredregarding the details of board meetings held by the Debtor. Dr.Sahni testified there had been such meetings, but that he couldnot then recall any details of their particulars, frequency ortiming, without consulting his records. To date, no board minutesof Greenbelt CT, itself, whatsoever, have been delivered to GECC.These circumstances, GECC contends, strongly suggest that thecorporation minutes themselves are only now being created,retroactively, or that no meetings of the company's directors wereever held, at all.

Unreimbursed Limousine Expenses

Dr. Rakesh Sahni, GECC relates, is the sole owner of Greenbelt.At the first meeting of creditors, Dr. Sahni testified that theDebtor owns a luxury Maybach limousine for more than $240,000.While the Debtor is no longer paying debt service on the vehicle,it is still being used by Dr. Sahni, and there is no indicationthat Dr. Sahni is presently reimbursing the Debtor for post-petition mileage and depreciation on the vehicle, let alone at anappropriate rate.

GECC believes that any improper uncompensated personal use of theMaybach limousine which is found to exist, or the substantial costpaid by the Debtor for the vehicle's acquisition, together with aratable share of the salary and beneifts paid by the Debtor to thedriver may constitute a fraudulent conveyance or an otheriwseavoidable transfer from the Debtor under Maryland law.

Unreimbursed Personal Services

In addition, GECC believes that a close examination of theDebtor's books, records and business practices may conceivablyreveal that Dr. Sahni and his wife, who was, for a period of timeherself on the company's payroll, may either not have beenreimbursed by Greenbelt CT or Greenbelt PET at arms-length ratesfor their various personal services to the Debtor and GreenbeltPET, given the "handsome" levels of compensation paid out by theDebtor to them.

GECC continues that they may not have paid the Debtor andGreenbelt PET at market rate for the value of perks such aspersonal use of company automobiles, like the Maybach, which theymay have received from the Debtor, or that voidable transfers ofother natures, both to these persons and to other corporateaffiliates of the Debtor, may exist.

As a result of these anomalies, GECC tells the Court that anappointment of an examiner is appropriate, including aninvestigation as to the following:

(1) Whether any corporate assets of the Debtor or Greenbelt PET have been improperly diverted to Dr. Sahni or his family members or to various corporate affiliates of the Debtor via dealings between these persons and the Debtor and Greenbelt PET at less than arms-length, for inadequate value, and, if so, whether these circumstances give rise to de-facto fraudulent conveyances or other avoidable transfers which should be recovered by the Debtor's bankruptcy estate, for the benefit of all creditors, under applicable law; and

(2) Whether grounds exist to pierce the Debtor's corporate veil and make Dr. Sahni liable for the claims of all corporate creditors, insofar as the delay in producing corporate records suggests both records mis-management as well as the possibility that corporate formalities may not have been followed.

GECC reminds the Court that the requested appointment of anexaminer is mandatory under Section 1104(c)(2) of the U.S.Bankruptcy Code, if a Debtor's unsecured liquidated debts tocorporate creditors exceed $5 million. Otherwise, appointment isdiscretionary under Section 1104(c)(1).

Here, the Debtor's liquidated debt to GECC totals more than$5 million. Whether or not unsecured debt of more than $5 millionis owed to GECC will depend on the scope and valuation of GECC'scollateral, including receivable collateral for which the Debtordisputes the validity of GECC's lien.

HEALTHSPORT INC: Posts $3.0 Million Net Loss in Third Quarter-------------------------------------------------------------Healthsport Inc. reported a net loss of $3.0 million for the thirdquarter ended Sept. 30, 2007, compared with a net loss of $296,107in the comparable period in 2006.

During the three months ended Sept. 30, 2007, the company hadproduct sales of $110,473 and revenues from license fees,royalties and services of $45,134, a total of $155,607. Therewere no sales in the corresponding 2006 period.

Total costs and expenses increased to $3.0 million in the threemonths ended Sept. 30, 2007, compared to total costs and expensesof $176,922 in the 2006 period. The company had minimaloperations in 2006 until completing the acquisition of HealthStrip at the end of March 2006.

During the nine months ended Sept. 30, 2007, the company hadproduct sales of $135,058 and revenues from license fees,royalties and services of $109,156, a total of $244,214. Therewere no sales in the corresponding 2006 period.

Net loss was $6.9 million during the nine months ended Sept. 30,2007, compared with a net loss of $1.1 million in the nine monthsended Sept. 30, 2006. Total costs and expenses increased to$7.0 million from $392,982 in the nine months ended Sept. 30,2006.

At Sept. 30, 2007, the company's consolidated balance sheet showed$34.7 million in total assets, $2.1 million in total liabilities,and $32.6 million in total stockholders' equity.

As of Sept. 30, 2007, the company had working capital of$1.1 million and had incurred losses of $3.0 million and$6.9 million during the three and nine months ended Sept. 30,2007, respectively. In addition, the Company had revenues of$155,607 and $244,214 during the three and nine months endedSept. 30, 2007, respectively. The company began sales of two newproducts in the fourth quarter, FIX STRIPS(TM) and a lower doseelectrolyte strip for children. However, while the companyexpects substantial sales growth from these and its otherproducts, it is unlikely sales will generate sufficient cash flowto fund the development of business, projected operating expensesand commitments before 2008.

These conditions raise substantial doubt about the company'sability to continue as a going concern.

About Healthsport Inc.

Headquartered in Tulsa, Okla., HealthSport Inc. (OTC BB: HSPO.OB)-- http://www.healthsportinc.com/-- is a developer, manufacturer and marketer of proprietary branded and private label edible filmstrip nutritional supplements and over-the-counter drugs. Thecompany owns two subsidiaries - Enlyten Inc. and InnoZen Inc.Enlyten was created to market and distribute HealthSport'sproducts. InnoZen -- http://www.innozen.com/-- is the developer, formulator, and manufacturer of edible film strips that deliverdrug actives through buccal absorption.

HIDDEN SPLENDOR: Wants to Access First Zion's Cash Collateral-------------------------------------------------------------Hidden Splendor Resources Inc. asks the United States BankruptcyCourt for the District of Nevada for authority to use the cashcollateral of Zions First National Bank.

The Debtor tells the Court that the cash collateral will be usedto enable continued operations during the course of its Chapter 11proceeding.

The Debtor's bankruptcy counsel, John White, Esq., said ZionsFirst have agreed to allow the Debtor to use its cash collateralprovided that the Debtor complies with the terms in the agreementand financial requirements of the budget.

Under the agreement, the Debtor will, among others:

a) forfeit the Debtor's right to seek, absent Zions First consent, superprioty financing under the provisions of the Bankruptcy Code Section 364(d);

b) grant to Zions First a lien on property of the estate subject to its pre-petition lien, including cash and any other postpetition accretions, which lien has priority over any and all administrative expenses of the kind specified in Section 503(b) of the Bankruptcy Code;

c) agree not to contest the validity or perfection of Zions First prepetition liens and financing statements;

d) agree that Zions First postpetition liens are subject to automatice perfection, without need to comply with applicable state laws;

e) agree that any extension of the exclusivity period to file a disclosure statement and plan shall not extend that period as to Zions First; and

f) release Zions First from any prepetition liability.

In addition, the Debtor agreed that all cash and cash equivalentwill be deposited immediately as provided in the agreement.

Based in Reno, Nevada, Hidden Splendor Resources, Inc., is a realestate investment trust. The company and its affiliate, Mid-StateServices, Inc., filed for chapter 11 protection on Oct. 15, 2007(Bankr. D. Nev. Case Nos. 07-51378 & 07-51379). John A. White,Jr., Esq., represents the Debtor in its restructuring efforts.The U.S. Trustee for Region 17 has appointed five creditors toserve on an Official Committee of Unsecured Creitors for theDebtor's case. Mark E. Freedlander, Esq., at McGuirewoods LLP,represents the Committee. Hidden Splendor diclosed estimatedassets between $10 million and $50 million and estimated debtsbetween $1 million and $10 million at the time of its filing.Mid-State disclosed estimated assets and debts between $1 millionand $10 million.

Bedinger & Company CPAs, in Concord, Calif., expressed substantialdoubt about Home Director Inc.'s ability to continue as a goingconcern after auditing the company's consolidated financialstatements for the year ended Dec. 31, 2006. The auditing firmpointed to the company's recurring losses from operations.

About Home Director

Headquartered in Fremont, Calif., Home Director Inc. (OTC BB:HMDO.OB) -- http://www.homedirector.com/-- provides home networking solutions to homeowners through a network ofdistribution and technology business partners. The company andits debtor-affiliates filed separate chapter 11 petitions onSept. 28, 2005 (Bankr. N.D. Calif. Lead Case No. 05-45812). TracyGreen, Esq., and Elizabeth Berke-Dreyfuss, Esq., at Wendel, Rosen,Black and Dean, represented the Debtors. The Debtors estimatedtheir assets at $10.6 million and Debts at $4.2 million when theyfiled for bankruptcy.

Subsequent to the Bankruptcy Court's confirmation of Debtors'Joint Plan of Reorganization on Oct. 12, 2006, the company emergedfrom Bankruptcy on Oct. 23, 2006.

HYDROGEN POWER: Posts $1.5 Million Net Loss in Third Quarter------------------------------------------------------------Hydrogen Power Inc. reported a net loss of $1.5 million for thethird quarter ended Sept. 30, 2007, compared with a net loss of$2.9 million in the same period last year. The company reported$-0- revenues for both comparable periods.

At Sept. 30, 2007, the company's consolidated balance sheet showed$7.9 million in total assets, $2.1 million in total liabilities,and $5.8 million in total stockholders' equity.

The company's consolidated balance sheet at Sept. 30, 2007, alsoshowed strained liquidity with $403,988 in total current assetsavailable to pay $2.1 million in total current liabilities.

Peterson Sullivan PLLC, in Seattle, Washington, expressedsubstantial doubt about Hydrogen Power Inc.'s ability to continueas a going concern after auditing the company's consolidatedfinancial statements for the year ended Dec. 31, 2006. Theauditing firm reported that the company incurred significantlosses and has an accumulated deficit of approximately$55 million, and a working capital deficit of $2.0 million atDec. 31, 2006.

On Aug. 6, 2007, the company received a notice of default from twoof its lenders demanding immediate payment of all monies dueincluding costs incurred in collection.

About Hydrogen Power

Headquartered in Seattle, Wash., Hydrogen Power Inc. (OTC BB:HYDP.OB) -- http://www.hydrogenpowerinc.com/-- performs hydrogen- related testing, research and engineering, and has developed apatented system that creates pure hydrogen from the reaction ofaluminum and water. The patented technology allows hydrogen gasto be generated on-site and on-demand, without electricity, thusoffering the potential to overcome transportation and storageproblems. The company is at the early stage of testing andevaluating the commercial application of the licensed technologyand the design and engineering of prototypes.

ICONIX BRAND: Planned Loan Increase Cues Moody's to Hold B1 PDR---------------------------------------------------------------Moody's Investors Service affirmed Iconix Brand Group Inc.'sCorporate Family and Probability of Default Ratings at B1 and thecompany's secured term loan financing at Ba2 following thecompany's announcement it is intending to increase the existingterm loan to approximately $270 million from $210 millionutilizing the term loan facility's 'accordion' option. Theproceeds from the incremental term loan facility will be primarilyused to fund the purchase of the Starter brand from Nike, Inc.Moody's also affirmed the B3 rating of the company's$287.5 million senior subordinated notes. The rating outlookremains stable.

Iconix's B1 corporate family rating reflects its relatively stableand predictable revenue streams from royalty payments received bythe company which include significant guaranteed minimum amounts,diversification of the company's product and brand portfolio, andfinancial metrics which remain higher than for similarly ratedpeers. These factors are offset by its narrow business focussolely as a licensor of brands, its acquisitive growth strategy,with the majority of current revenues derived from brands acquiredsince the beginning of 2006. The stable outlook reflects Moody'sexpectations the company will continue to maintain financialmetrics at levels appropriate for the rating category and tomaintain stable licensing revenues for the company as a whole.

The secured term loan rating reflects its probability of defaultrating of B1 and its loss given default assessment of LGD 2 -- 21%and the B3 rating for the convertible senior subordinated notesreflects the probability of default rating of B1 and the lossgiven default assessment of LGD 5 -- 78%.

The review was initiated November 21, 2007, and prompted by thecompany's announcement that it will tender for $295 million ofcommon stock and fund such transaction with the proposed noteissuance as well as balance sheet cash. The company also intends,subject to financing and market conditions, to repurchaseadditional shares in fiscal 2008 such that total repurchases wouldreach $500 million.

The review will focus on the company's capital structure andliquidity profile pro forma the tender offer and subsequent sharerepurchases as well as the company's prospects to profitably growrevenues on a sustained basis in the competitive and slow growthoffice equipment sector.

IKON Office Solutions, headquartered in Malvern, Pennsylvania isthe largest independent copier distributor in North America andthe United Kingdom with revenues of $4.2 billion.

INPHONIC INC: Hires BMC Group as Claims and Balloting Agent-----------------------------------------------------------InPhonic Inc. and its debtor-affiliates obtained authority fromthe United States Bankruptcy Court for the District of Delaware toemploy BMC Group Inc. as their noticing, claims and ballotingagent, nunc pro tunc to Nov. 8, 2007.

-- notice of the commencement of these Chapter 11 cases and it the initial meetings of creditors under Section 341 of the Bankruptcy Code;

-- notice of the claims bar date;

-- notice of objections to claims;

-- notice of any hearings on a disclosure statement and confirmation of a plan of reorganization;

-- other miscellaneous notices to any entities as the Debtors or the Bankruptcy Court may deem necessary or appropriate for an orderly administration of these Chapter 11 cases; and

-- the publication of required notices, as necessary;

b) within five days after the mailing of a particular notice, file with the clerk's office a certificate of affidavit of service that includes a copy of the notice involved, a list of persons to whom the notice was mailed, and the date and manner of mailing;

c) assist the Debtors in the preparation and filing of the schedules of assets and liabilities and statement of financial affairs;

d) maintain copies of all proofs of claim and proofs of interest filed;

e) maintain official claims registers, including, among other things, these information for each proof of claim or proof of interest;

-- name and address of the claimant and any agent;

-- date received;

-- claim number assigned; and

-- asserted amount and classification of the claim;

f) create and administer a claims database;

g) implement necessary security measures to ensure the completeness and integrity of the claims registers;

h) transmit to the clerk's office a copy of the claims register on a monthly basis, or, in the alternative, make available the proof of claim docket online to the clerk's office via the claims manager claims systems;

i) maintain an up to date mailing list for all entities that have filed a proof of claim or proof of interest, which list shall be available upon request of a party in interest or the clerk's office;

j) provide access to the public for examination of copies of the proofs of claims or interest without charge during regular business hours;

k) record all transfers of claims pursuant to Bankruptcy Rule 3001(e) and provide notice of the transfers as required by the Bankruptcy Rule 3001(e);

o) provide balloting services in connection with the solicitation process for any Chapter 11 plan to which a disclosure statement has been approved by the Court;

p) provide others claims processing, noticing, and related administrative services as amy be requested from time to time by the Debtors; and

q) promptly comply with further conditions and requirements as the clerk's office or the Court may at any time prescribe.

The Debtors agreed that fees and expenses of the firm incurred betreated as administrative expense of the Debtors' estates, and thefirm be paid in the ordinary course of business.

Tina Marie Feil, the president of the firm's legal services,assures the Court that the firm is a "disinterested person"pursuant to Section 101(14) of the Bankruptcy Code.

Headquartered in Washington, DC, InPhonic Inc. (NASDAQ:INPC)--http://www.inphonic.com/-- is an online seller of wireless services in the United States. The company operates its businessthrough three business segments: wireless activation and services;mobile virtual network enabler services, and data services.

When the Debtors filed from protection from their creditors,they listed total assets of $120,916,991 and total debts of$179,402,834.

INPHONIC INC: Section 341(a) Meeting Scheduled for December 13--------------------------------------------------------------The U.S. Trustee for Region 3 will convene a meeting of creditorsof InPhonic Inc. and its debtor-affiliates at 2:30 p.m. onDec. 13, 2007.

The hearing will be held at Caleb Boggs Federal Building, 844 KingStreet, 2nd Floor, Room 2112 in Wilmington, Delaware.

This is the first meeting of creditors required under Section341(a) of the Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

Headquartered in Washington, DC, InPhonic Inc. (NASDAQ:INPC)--http://www.inphonic.com/-- is an online seller of wireless services in the United States. The company operates its businessthrough three business segments: wireless activation and services;mobile virtual network enabler services, and data services.

When the Debtors filed from protection from their creditors,they listed total assets of $120,916,991 and total debts of$179,402,834.

INTEGRAL NUCLEAR: Exclusive Plan Filing Period Moved to Jan. 28---------------------------------------------------------------The U.S. Bankruptcy Court for the District of New Jersey furtherextended Integral Nuclear Associates LLC and its debtor-affiliates' exclusive period to file a plan of reorganizationuntil Jan. 28, 2008, Bill Rochelle of Bloomberg News reports.

JAYS FOODS: Submits Schedules of Assets and Liabilities-------------------------------------------------------Jays Foods Inc. and Select Snacks Inc. submitted to the HonorablePamela S. Hollis of the U.S. Bankruptcy Court for the NorthernDistrict of Illinois their schedules of assets and liabilities,disclosing:

The company, then known as Jays Food LLC, first filed for chapter11 protection on March 5, 2004 (Bankr. N.D. Ill. Case No. 04-08681). David Missner, Esq., Marc I. Fenton, Esq. and ThomasZwartz, Esq. at Piper Rudnick LLP were counsels to the Debtor. Inthe March 2004 case, a Section 363 sale took place and most of theassets of former Jays Foods were sold to Jays Foods AcquisitionInc., predecessor to Jays Foods Inc. The March 2004 case wasclosed on or about March 9, 2007.

Select Snacks Inc., on the other hand, owns real property,improvements and equipment in Jeffersonville, Indiana where itoperates a manufacturing facility that makes private label and co-manufactured snacks for its customers. Select Snacks is 100%owned by Select Snacks Holdings Company, Inc.

Both Select Holding and Jays Holding are 100% owned by UbiquityBrands LLC.

As of the Oct. 11, 2007, the Debtors had approximately 943employees of which Select has 262 (211 union employees and, 51non-union employees) and Jays has 681 total employees (236 unionemployees and 445 non-union employees).

JAYS FOODS: Court Sets December 17 as General Claims Bar Date-------------------------------------------------------------The Honorable Pamela S. Hollis of the U.S. Bankruptcy Court forthe Northern District of Illinois set Dec. 17, 2007, as the lastday for filing general proofs of claims against Jays Foods Inc.and Select Snacks Inc.

Governmental unit have until April 8, 2008 to file their proofs ofclaim.

The company, then known as Jays Food LLC, first filed for chapter11 protection on March 5, 2004 (Bankr. N.D. Ill. Case No. 04-08681). David Missner, Esq., Marc I. Fenton, Esq. and ThomasZwartz, Esq. at Piper Rudnick LLP were counsels to the Debtor. Inthe March 2004 case, a Section 363 sale took place and most of theassets of former Jays Foods were sold to Jays Foods AcquisitionInc., predecessor to Jays Foods Inc. The March 2004 case wasclosed on or about March 9, 2007.

Select Snacks Inc., on the other hand, owns real property,improvements and equipment in Jeffersonville, Indiana where itoperates a manufacturing facility that makes private label and co-manufactured snacks for its customers. Select Snacks is 100%owned by Select Snacks Holdings Company, Inc.

Both Select Holding and Jays Holding are 100% owned by UbiquityBrands LLC.

As of the Oct. 11, 2007, the Debtors had approximately 943employees of which Select has 262 (211 union employees and, 51non-union employees) and Jays has 681 total employees (236 unionemployees and 445 non-union employees).

Based in Fort Lauderdale, Florida, Levitt and Sons LLC --http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. --http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estatedevelopment company in the southeastern United States. Thecompany operates in two divisions, homebuilding and land. Thehomebuilding division primarily develops single and multi-familyhomes for adults and families in Florida, Georgia, Tennessee, andSouth Carolina. The land division engages in the development ofmaster-planned communities in Florida and South Carolina.

Ruden represented certain of the Debtors before their bankruptcyin connection with closings and lien issues in Tennessee, Georgiaand Florida. As a result, Ruden is familiar with these matters,and has already devoted numerous hours in addressing the issues,Paul Steven Singerman, Esq., at Berger Singerman, P.A., in FortLauderdale, Florida, says. The firm has extensive knowledge inthese related fields and is well qualified to advise the Debtors,he adds.

Mr. Singerman tells the Court that the firm's priorrepresentation of the Debtors does not preclude its retention asspecial counsel pursuant to Section 327(e) of the U.S. BankruptcyCode.

Ruden will provide legal services in connection with closings andlien issues in Tennessee, Georgia and Florida.

The Debtors have sought and obtained Court approval for theretention of Berger Singerman, P.A., as their general bankruptcycounsel in their Chapter 11 cases. Mr. Singerman assures theCourt that the scope of services to be rendered by Ruden will notbe duplicative of those services to be rendered by BergerSingerman, and the services of these counsel will not overlap.

Mr. Singerman states that although, as of the date of bankruptcy,Ruden holds a prepetition claim against the Debtors for $56,264,the matters on which the firm is to be employed are unaffected bythe fact of that claim.

The Debtors will pay Ruden at its standard hourly rates, whichare revised during January of each year, and will reimburse thefirm for cash disbursements and for reasonable and necessaryexpenses. The firm's current rates are:

Barry E. Somerstein, a shareholder of Ruden, assures the Courtthat the firm does not hold or represent any interest adverse tothe Debtors, their estates, or creditors in the matters uponwhich Ruden is proposed to be retained.

About Levitt and Sons

Based in Fort Lauderdale, Florida, Levitt and Sons LLC --http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. --http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estatedevelopment company in the southeastern United States. Thecompany operates in two divisions, homebuilding and land. Thehomebuilding division primarily develops single and multi-familyhomes for adults and families in Florida, Georgia, Tennessee, andSouth Carolina. The land division engages in the development ofmaster-planned communities in Florida and South Carolina.

LEVITT AND SONS: Can Use Cash Collateral Until December 19----------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Floridaagain gave interim authority to Levitt and Sons LLC and itsdebtor-affiliates to use cash on hand from the date of bankruptcythrough the Dec. 19, 2007 hearing.

The Debtors may use the cash on hand to pay their ordinary andnecessary business expenses as set forth in a budget, providedthat the Debtors may exceed the line item amounts in the budget byno more than 10%.

As adequate protection for the use of cash on hand, each of thelenders, KeyBank, N.A., RegionsBank, N.A., Wachovia Bank, N.A.,AmTrust Bank, FSB, and Bank of America, the Court granted each areplacement lien on all postpetition property of the Debtors thatis of the same nature and type as each lender's prepetitioncollateral.

Before the December 19 Hearing, any lender may seek to terminatethe Debtors' use of cash collateral on an emergency basis withexpedited notice to the Debtors.

All objections to the cash collateral motion not previouslyresolved are overruled by the Court.

Based in Fort Lauderdale, Florida, Levitt and Sons LLC --http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. --http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estatedevelopment company in the southeastern United States. Thecompany operates in two divisions, homebuilding and land. Thehomebuilding division primarily develops single and multi-familyhomes for adults and families in Florida, Georgia, Tennessee, andSouth Carolina. The land division engages in the development ofmaster-planned communities in Florida and South Carolina.

The rating affirmations are the results of stable performance andminimal paydown since issuance. As of the November 2007remittance report, the transaction has paid down 0.4% to $1.55billion from $1.56 billion at issuance.

There are currently no delinquent or specially serviced loans inthe transaction.

The London NYC Hotel Land Interest, a 334,125 square foot parcelin New York City is ground leased to the London NYC Hotel and novariance in performance has been reported since issuance. HuronEstates, an 806 pad mobile home park located in Romulus, Michigan,is 98% occupied as of June 2007, compared to 97% occupancy atissuance.

MOVIE GALLERY: Can Hire Ernst & Young as Tax Advisors-----------------------------------------------------Movie Gallery Inc. and its debtor-affiliates obtained permissionfrom the U.S. Bankruptcy Court for the Eastern District ofVirginia to employ Ernst & Young LLP as their independentauditors, accountants and tax advisors in their Chapter 11 cases.

Acting on Movie Gallery, Inc.'s behalf, Page Todd, executivevice president, secretary and general counsel to the Debtors,entered into an audit services agreement and tax servicesagreement with Ernst & Young.

Pursuant to the agreements, Ernst is expected to provide audit andaccounting services, particularly:

(a) annual audit procedures necessary to express an opinion on the Debtors' consolidated financial statements, and on the effectiveness of their internal controls over financial reporting, as of Jan. 6, 2008;

(c) research and consultation regarding financial accounting, and reporting matters as, and when they arise;

(d) communications with the Audit Committee of the Board of Directors of Movie Gallery, Inc., as required and scheduled; and

(e) preparation of management letters to communicate to the Debtors and the Audit Committee any material weaknesses or significant deficiencies in internal controls over financial reporting, if any, as well as suggestions for improving any other deficiencies that do not rise to the level of a material weakness or significant deficiency.

The firm is also expected to perform certain tax services,including:

(a) routine on-call tax advice and assistance concerning issues as requested by Movie Gallery, Inc.'s tax department, provided that the projects are not covered by a separate project addendum and do not involve any significant tax planning or projects; and

Alvin L. Winterroth, Esq., a partner at Ernst & Young, informedthe Court that the Debtors made pre-bankruptcy payments for$521,306 and a retainer fee of approximately US$200,000 to hisfirm.

As of the bankruptcy filing, Ernst & Young was owed $60,645 ofprepetition payments by the Debtors. Upon the Court's approvalof the firm's retention in the Debtors' Chapter 11 Cases, thefirm will waive its right to receive any prepetition fees orexpenses incurred on the Debtors' behalf.

Mr. Winterroth assured the Court that Ernst & Young neitherholds nor represents any interest adverse to the Debtors andtheir estates, and the firm is a "disinterested person" as thatterm is defined in Section 101(14) of the Bankruptcy Code, asmodified by Section 1107(b) of the Bankruptcy Code.

About Movie Gallery

Based in Dothan, Alabama, Movie Gallery Inc. --http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores thatrent and sell DVDs, videocassettes and video games.

The amendment was done to comply with the final DIP financingorder given by the Honorable Douglas O. Tice of the U.S.Bankruptcy Court for the Eastern District of Virginia.

Pursuant to the amendment, Section 3.2(b) of the Credit Agreement,which required the Debtors to have been assigned and maintain acredit rating by Moody's and S&P, has been deleted in itsentirety.

In addition, Section 8.1(l)(iv) of the DIP Credit Agreement hasbeen deleted and replaced in its entirety with:

"(iv) granting any other relief that is materially adverse to Administrative Agent's, Syndication Agent's, Collateral Agent's or Lenders' interests under any Credit Document or their rights and remedies hereunder or their interest in the Collateral, provided that, in respect of the foregoing subclause (iv), if such relief was sought by parties other than Credit Parties, any of the Administrative Agent, Syndication Agent or Collateral Agent or any Lender shall have requested in writing that Credit Parties oppose the motion and the Credit Parties shall have failed to do so;."

Based in Dothan, Alabama, Movie Gallery Inc. --http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores thatrent and sell DVDs, videocassettes and video games.

The Debtors' spokeswoman Meaghan Repko said that the Plan will notbe filed before November 27, and the company does not expect toexit bankruptcy protection before the second quarter of 2008.

MOVIE GALLERY: Wants Lease Termination Procedures Approved----------------------------------------------------------Movie Gallery Inc. and its debtor-affiliates ask the U.S.Bankruptcy Court for the Eastern District of Virginia to approvecertain procedures relating to the termination of leaseagreements, and consequently permit the Debtors to enter intolease termination agreements with certain lessors.

The Debtors' proposed Procedures are:

(1) In situations where the aggregate amount of the claims waived or cash consideration paid by a lessor as part of a lease termination agreement does not exceed $250,000, the Debtors are authorized to consummate the agreement that they determine to be in the best interest of their estates.

(2) In situations where the aggregate amount of the claims waived or cash consideration paid by a Lessor as part of an agreement exceeds $250,000:

-- the Debtors are authorized to consummate the agreement; and

-- the Debtors will serve a notice of the agreement to all notice parties affected entities, including the lessor.

Absent any written objections with respect to the agreement, the Debtors are authorized to immediately consummate the transaction; provided that the Parties will have an additional three business days to object. If any timely filed objection is not resolved within the period, the agreement will only be consummated upon Court order, except for multiple agreements that are the subject of the same notice.

(3) The Debtors may effect set-offs without obtaining further Court approval.

In the event that the Debtors have provided a cash security deposit, bond or similar financial instrument to secure their obligations under the lease, the lessor is permitted to effect an otherwise valid set-off when entering into the agreement, in accordance with Section 553 of the Bankruptcy Code.

Kimberly A. Pierro, Esq., at Kutak Rock LLP, in Richmond,Virginia, relates that under the circumstances of the Debtors'Chapter 11 cases, allowing lease termination agreements pursuantto the Procedures "is supported by a sound business purpose."

Specifically, she says, the Debtors will enter into LTAs toobtain value for their estates through several different avenues,specifically to store locations that are not currently profitableor are not projected to be profitable in the future.

Accordingly, the Debtors intend to enter into LTAs with a lessorto terminate the lease in exchange for value, including but notlimited to the the lessor's waiver of prepetition or postpetitionclaims and cash consideration, which permits the lessor to reletpremises to third parties immediately upon the LTAs'effectiveness and regain certainty with respect to the lease.

Ms. Pierro adds that absent the LTAs, the Debtors are deemed tobe potentially burdened with unnecessary and additionalobligations. The Debtors are left with four options with respectto unprofitable or potentially unprofitable store locations:

(a) maintain the current lease; (b) assume the lease; (c) reject the lease; or (d) enter into LTAs with respect to the Lease, and subsequently obtain Court approval of the agreements.

The Debtors anticipate that they will seek to enter into LTAs ona continuing basis to ensure that they do not unnecessarily incuradministrative expenses for unnecessary or unprofitable Leases.If the Debtors were required to file a separate request, asopposed to acting with authority pursuant to Court-approvedprocedures, the Debtors will spend substantial sums preparing,filing and serving requests with the Court.

LTA Procedures Must be Approved

According to Ms. Pierro, the LTAs will minimize the Debtors'postpetition obligations, but will not come at the expense ofcounterparties' rights to the leases and other parties ininterest, as each agreement entered into by the Debtors willrequire mutual consent from the lessor.

Specifically, the Debtors will evaluate potential LTAs with theaid of their advisors, negotiate with the lessors, and enter intothe agreements that represent commercially viable transactions.Hence, the transactions contemplated by the LTA Procedures willbe conducted in good faith and at arm's-length, Ms. Pierroassures the Court.

Furthermore, she adds, the LTA Procedures allow the Debtors andLessors to mutually negotiate and consent to set off variousobligations without further Court authority through an LTAthereby saving all parties substantial legal expense to effectotherwise valid set-offs.

About Movie Gallery

Based in Dothan, Alabama, Movie Gallery Inc. --http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores thatrent and sell DVDs, videocassettes and video games.

NATIONAL RETAIL: Fitch Lifts Rating on Preferred Stock from BB+---------------------------------------------------------------Fitch Ratings has upgraded these credit ratings of National RetailProperties, Inc.:

Fitch's upgrades follow NNN's accomplishment of several goals overthe past year that have strengthened the company'screditworthiness, particularly in light of Fitch resolving thecompany's Outlook. Fitch revised NNN's Rating Outlook to Positivefrom Stable in 2005, and in 2006, Fitch specifically identifiedthe following factors in connection with resolving the PositiveOutlook: NNN's ability to keep core earnings from commercial netleased properties at current or higher levels relative to debt-service requirements, maintain manageable risk-adjustedcapitalization, remain disciplined with respect to build-for-saleactivities that have been successful thus far, and continuediversifying an already broad tenant base.

In 2007, through a sale-leaseback transaction with a largeconvenience store owner, the purchase of theater properties from aprivately held theater operator, and other accretive acquisitions,NNN has been able to grow earnings from stabilized free standingretail properties. Fitch calculates that NNN's fixed chargecoverage ratio was 2.7 times for the year-to-date period endingSept. 30, 2007, improved from 2.1x for the comparable period in2006. Given that 97% of NNN's assets are unencumbered by mortgagedebt, unencumbered properties have performed in a way thatprovides ample downside protection to unsecured bondholders.

Fitch recognizes management's focus on asset sales as an elementof active portfolio management and intention to generateapproximately $80 million in core portfolio dispositions in 2008.However, with respect to offsetting factors, Fitch views cashflows from asset sales as a more volatile cash flow source thancore operating earnings, and significantly discounts this cashflow.

Another credit concern for Fitch is NNN's increased exposure tothe convenience store industry, which is nevertheless a fragmentedline of trade. Fitch does not believe that NNN's exposure toconvenience store tenants will decline materially in the nearterm.

Fitch's upgrade of NNN's preferred stock to investment-gradefollows the redemption of $45 million 9% series A preferred stockin 2007 and common equity raises through the company's DividendReinvestment and Stock Purchase Plan and equity offering in April2007. These financial transactions have materially improved theposition of holders of NNN's $92 million 7.375% Series C preferredstock.

The Stable Outlook centers on NNN's strong liquidity position andFitch's expectation that funds from operations will grow modestlyin 2008. Internally-generated liquidity, the ownership of a largepool of unencumbered assets, and the recent exercise of theaccordion feature under NNN's revolving line of credit indicate aliquidity position appropriate for the 'BBB' IDR level.

During the next 12-to-24 months, Fitch will monitor theperformance of NNN's entire franchise, including the recentlyformed joint venture with an affiliate of Crow Holdings RealtyPartners IV, L.P. Fitch will also monitor the broader retailenvironment, as Fitch believes that on a macroeconomic basis,comparable retail sales growth in 2008 will be weaker than 2007levels.

For NNN to remain a 'BBB' rated credit, Fitch will look to NNN tomaintain fixed charge coverage ratios demonstrated in 2007 year-to-date, continue to limit its mezzanine lending business andmortgage residual investments, and continue to own a mostlyunencumbered property portfolio.

b) assist the Committee in its investigation of the acts, conducts, assets, liabilities, and financial condition of the Debtor, the operation of the of the Debtor's business and the Debtor's business and the desirability of continuing the same, the potential sale of the Debtor's assets, and any other matter relevant to this case or the formulation and analysis of any plan of reorganization or plan of liquid ation;

c) attend meetings of the Committee and meetings with the Debtor, its attorneys, and other professionals, as requested by the Committee;

d) represent the Committee in hearings before the Court;

e) assist the Committee in preparing all necessary motions, applications, responses, reports, and other pleadings in connection with the administration of this case; and

f) provide other legal assistance as the Committee may deem necessary and appropriate.

To the best of the Committee's knowledge the firm does nothold any interest adverse to the Debtor's estate and is a"disinterested person" as defined in Section 101(14) of theBankruptcy Code.

Headquartered in Jacksonville, Florida, NetBank Inc. --http://www.netbank.com/-- is a financial holding company of Netbank, the United States' oldest Internet bank serving retailand business customers in all 50 states. NetBank Inc. does retailbanking, mortgage banking, business finance, and providing ATM andmerchant processing services.

The company filed for Chapter 11 protection on Sept. 28, 2007(Bankr. M.D. Fla. Case No. 07-04295). Alan M. Weiss, Esq., atHolland & Knight LLP. The U.S. Trustee for Region 21 appointedsix creditors to serve on an Official Committee of UnsecuredCreditors of the Debtor's case. As of Sept. 25, 2007, Debtorlisted total assets at $87,213,942 and total debts at$42,245,857.

b) assist the Committee in its investigation of the acts, conducts, assets, liabilities, and financial condition of the Debtor, the operation of the of the Debtor's business and the Debtor's business and the desirability of continuing the same, the potential sale of the Debtor's assets, and any other matter relevant to this case or the formulation and analysis of any plan of reorganization or plan of liquid ation;

c) attend meetings of the Committee and meetings with the Debtor, its attorneys, and other professionals, as requested by the Committee;

d) represent the Committee in hearings before the Courtl;

e) assist the Committee in preparing all necessary motions, applications, responses, reports, and other pleadings in connection with the administration of this case; and

f) provide other legal assistance as the Committee may deem necessary and appropriate.

Todd C. Meyers, a partner of the firm, will bill $525 per houruntil Nov. 30, 2007. In Mr. Meyers' affidavit, he will charge$565 per hour commencing Dec. 1, 2007, for this engagement.

To the best of the Committee's knowledge the firm is a"disinterested person" as defined in Section 101(14) of theBankruptcy Court.

Headquartered in Jacksonville, Florida, NetBank Inc. --http://www.netbank.com/-- is a financial holding company of Netbank, the United States' oldest Internet bank serving retailand business customers in all 50 states. NetBank Inc. does retailbanking, mortgage banking, business finance, and providing ATM andmerchant processing services.

The company filed for Chapter 11 protection on Sept. 28, 2007(Bankr. M.D. Fla. Case No. 07-04295). Alan M. Weiss, Esq., atHolland & Knight LLP. The U.S. Trustee for Region 21 appointedsix creditors to serve on an Official Committee of UnsecuredCreditors of the Debtor's case. As of Sept. 25, 2007, Debtorlisted total assets at $87,213,942 and total debts at$42,245,857.

NETBANK INC: Creditors Have Until Feb. 15 to File Proofs of Claim-----------------------------------------------------------------The Honorable Jerry A. Funk of the United States Bankruptcy Courtfor the Middle District of Florida established Feb. 15, 2008, asthe last day whithin which NetBank Inc.'s creditors may file theirproofs of claims.

All governmental units may file their proofs of claim on or beforeMarch 26, 2008.

Proofs of claims must be filed at the clerk's office at thisaddress:

Clerk of the United States Bankruptcy Court for the Middle District of Florida 300 North Hogan Street Suite 3-350 Jacksonville, FL 32202

Headquartered in Jacksonville, Florida, NetBank Inc. --http://www.netbank.com/-- is a financial holding company of Netbank, the United States' oldest Internet bank serving retailand business customers in all 50 states. NetBank Inc. does retailbanking, mortgage banking, business finance, and providing ATM andmerchant processing services.

The company filed for Chapter 11 protection on Sept. 28, 2007(Bankr. M.D. Fla. Case No. 07-04295). Alan M. Weiss, Esq., atHolland & Knight LLP. The U.S. Trustee for Region 21 appointedsix creditors to serve on an Official Committee of UnsecuredCreditors of the Debtor's case. As of Sept. 25, 2007, Debtorlisted total assets at $87,213,942 and total debts at$42,245,857.

NEW CENTURY: Court Approves Termination of Captive Policies-----------------------------------------------------------The United States Bankruptcy Court for the District of Delawarehas authorized New Century Financial Corp. and its debtor-affiliates to terminate all of NCMC Insurance Corporation'sremaining contractual obligations under the "captive" insurancepolicies, and directed NCMC Insurance to return the set-off amountto the Debtors. Accordingly, the automatic stay under Section 362of the Bankruptcy Code is modified, to the extent necessary.

In connection with NCMC Insurance's dissolution, the Courtdirected the Debtors to comply with the applicable requirementsunder Hawaii corporate and insurance law.

The Court also directed the Debtors to notify James M. Trush,Esq., at Trush Law Office in Costa Mesa, Calif., of theHawaii dissolution proceedings.

Mr. Trush is counsel for Daniel J. Rubio, John Hicks, DavidVizcarra.

As reported in the Troubled Company Reporter on Nov. 22, 2007,Daniel J. Rubio, John Hicks, David Vizcarra, objected to thetermination of the "captive" insurance policies, and asked theCourt to deny the motion, or order that NCMC Insurance Corporationsegregate $1,000,000 for paying their claims.

Founded in 1995, Irvine, Calif.-based New Century FinancialCorporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowersnationwide through its operating subsidiaries, New CenturyMortgage Corporation and Home123 Corporation. The company offersa broad range of mortgage products designed to meet the needs ofall borrowers.

NEW WORLD: Posts $731,079 Net Loss in Third Quarter---------------------------------------------------New World Brands Inc. reported a net loss of $731,079 on net salesof $4.2 million for the third quater ended Sept. 30, 2007,compared with a net loss of $619,376 on net sales of $4.3 millionin the corresponding period in 2006.

At Sept. 30, 2007, the company's consolidated balance sheet showed$6.5 million in total assets, $1.8 million in total liabilities,and $4.7 million in total stockholders' equity.

During the first three quarters of 2007, during the fiscal year2006 and in prior years, the company incurred ongoing substantiallosses and used cash from operating activities in 2006 and inprior years. These conditions raise substantial doubt about thecompany's ability to continue as a going concern without access tosubstantial additional capital or undertaking a restructuring ordiscontinuance of non-profitable business divisions or activities.

About New World Brands

Headquartered in Eugene, Ore., New World Brands Inc. (OTC BB:NWBD.OB) -- http://www.nwbtechnologies.com/-- is a telecommunications sales and service company, focusing on productsand services utilizing Voice over Internet Protocol technology.As a result of the sale of the its former subsidiary, IP GearLtd.,, the company is no longer in the VoIP equipment research anddevelopment and manufacturing business, and instead currentlyfocuses on two principal lines of business: (i) resale anddistribution of VoIP and other telephony equipment, and relatedprofessional services, particularly as the exclusive NorthAmerican distributor of TELES AG Informationstechnologien and IPGear Ltd. products; and (ii) telephony service resale, direct callrouting and carrier support.

At Sept. 30, 2007, the company's consolidated balance sheet alsoshowed strained liquidity with $532,062 in total current assetsavailable to pay $2.6 million in total current liabilities.

The company reported a net loss of $1.3 million on total revenueof $762,666 for the third quarter ended Sept. 30, 2007, comparedwith a net loss of $1.7 million on total revenue of $434,575 inthe same period last year.

The increase in total revenue is due to inclusion of salesrevenues from the operations of the Landis Salon and BlackChandelier operations of Gold Fusion Laboratories Inc., which wasacquired in September of 2006.

Nexia recorded operating losses of $1.2 million for the threemonth period ended Sept. 30, 2007, compared to losses of$1.5 million for the comparable period in the year 2006.

De Joya Griffith & Company LLC, in Henderson, Nev., expressedsubstantial doubt about Nexia Holdings Inc.'s ability to continueas a going concern after auditing the company's consolidatedfinancial statements for the years ended Dec. 31, 2006, and 2005.The auditing firm reported that the company has incurredcumulative operating losses through Dec. 31, 2006, of $15,568,646,and has a working capital deficit of $990,123 at Dec. 31, 2006.

Novell received a comment letter from the Securities and ExchangeCommission, dated Aug. 7, 2007, regarding Novell's Form 10-K forthe fiscal year ended Oct. 31, 2006, and its Form 10-Q for thequarterly period ended April 30, 2007. Novell delivered aresponse letter to the SEC on Sept. 20, 2007. On Oct. 18, 2007,Novell received a second comment letter from the SEC indicatingthat the SEC had reviewed Novell's response to the Aug. 7, 2007,letter. The second comment letter was limited to certainaccounting matters. Novell responded to the SEC's second commentletter on Nov. 7, 2007, and is awaiting a response.

"We are confident of our accounting and are working diligentlywith the SEC to respond to their inquiries," said Dana C. Russell,chief financial officer of Novell. "In an abundance of caution,we have chosen to postpone our earnings release. We look forwardto completing our dialogue with the SEC."

Novell intends to release its fourth quarter and full-year 2007earnings upon the completion of the SEC's review. Novell isunable to estimate when the process will be completed, butcurrently expects to file its Form 10-K for the fiscal year endedOct. 31, 2007, on or before its due date of Dec. 31, 2007.

Last May 23, 2007, Novell Inc. disclosed that it completed itsself-initiated, voluntary review of the company's historicalstock-based compensation practices and determined the relatedaccounting impact. The scope of the review covered approximately400 grant actions from Nov. 1, 1996, through Sept. 12, 2006. As aresult of the review, Novell delayed the filing of its quarterlyreports on Form 10-Q for the fiscal quarters ended July 31, 2006,and Jan. 31, 2007, and its annual report on Form 10-K for thefiscal year ended Oct. 31, 2006.

The Audit Committee, together with its independent outside legalcounsel, did not find any evidence of intentional wrongdoing byany former or current Novell employees, officers or directors.Novell determined, however, that it utilized incorrect measurementdates for some of the stock-based compensation awards grantedduring the review period.

About Novell Inc.

Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq:NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to datacenter operating systems based on Linux and the software requiredto secure and manage mixed IT environments.

PAN AMERICAN: Foreclosure Protection Extended Until December 12---------------------------------------------------------------The U.S. Bankruptcy Court for the Western District of Texasextended the automatic stay prohibiting Pan American GeneralHospital LLC from foreclosing until Dec. 12, 2007, Bill Rochelleof Bloomberg News reports.

According to Bloomberg, the extension was prompted after thethe Debtor earlier told the Court that it has an offer for$2.3 million that would more than pay the mortgage it holds infull.

Headquartered in El Paso, Texas, Pan American General HospitalLLC -- http://www.pachosp.com/-- owns and operates a physician- owned hospital that is licensed for 100 beds and is fullyaccredited by the Joint Commission on Accreditation ofHealthcare Organizations, Medicare, and the Texas Departmentof Health.

The company filed for Chapter 11 protection on August 6, 2007(Bankr. W. D. Tex. Case No. 07-30935). E.P. Bud Kirk, Esq. inEl Paso, Texas serves as the Debtor's counsel. When the Debtorfiled for bankruptcy, it listed total assets and debts between$1 million to $100 million. Glenn Grimsley was listed as theDebtor's largest unsecured creditor holding a claim of $1,088,063.

PERFORMANCE TRANS: U.S. Trustee Picks Five-Member Creditors Panel-----------------------------------------------------------------Diana G. Adams, the United States Trustee for Region 2, appointedfive members to the Official Committee of Unsecured Creditors inthe Chapter 11 cases of Performance Transportation Services Inc.and its debtor-affiliates.

Pursuant to Section 1103 of the Bankruptcy Code, the CreditorsCommittee may:

-- consult with the Debtor concerning the administration of the bankruptcy case;

-- investigate the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' business and the desirability of the continuance of the business, and any other matter relevant to the case or to the formulation of a plan of reorganization for the Debtors;

-- participate in the formulation of a plan, advise its constituents regarding the Committee's determinations as to any plan formulated, and collect and file with the Court acceptances or rejections of the plan;

-- request the appointment of a trustee or examiner; and

-- perform other services as are in the interest of its constituents.

The Creditors Committee may retain counsel, accountants, or otheragents, to represent or perform services for the group.

About Performance Transportation

Performance Transportation Services Inc. is the second largesttransporter of new automobiles, sport-utility vehicles and lighttrucks in North America, and operates under three keytransportation business lines including: E. and L. Transport,Hadley Auto Transport and Leaseway Motorcar Transport.

The company and 13 of its affiliates previously filed for Chapter11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06-00107). The Court confirmed the Debtors' plan on Dec. 21, 2006,and that plan became effective on Jan. 29, 2007. Garry M. Graber,Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Dayrepresented the Debtors in their restructuring efforts. When theDebtor filed for protection from their creditors it reported morethan $100,000,000 in total assets. It also disclosed owing morethan $100,000,000 to at most 10,000 creditors, including $708,679to Broadspire and $282,949 to General Motors of Canada Limited.

PERFORMANCE TRANS: Taps Hodgson Russ as Bankruptcy Co-Counsel-------------------------------------------------------------Performance Transportation Services Inc. and its debtor-affiliatesseek permission from the U.S. Bankruptcy Court for the WesternDistrict of New York to employ Hodgson Russ LLP as co-counsel withJones Day, nunc pro tunc to Nov. 19, 2007.

John Stalker, chief financial officer of PerformanceTransportation Services Inc., and 13 other debtor-affiliates,says Hodgson Russ has participated in most of the largeand complex Chapter 11 cases in the district. Mr. Stalkerreminds the Court that Hodgson Russ was employed by the Debtorsin their PTS I bankruptcy cases.

Hodgson Russ will:

(a) advise the Debtors of their rights, powers and duties as debtors and debtors-in-possession continuing to operate and manage their businesses and properties under Chapter 11 of the Bankruptcy Code;

(b) prepare, on behalf of the Debtors, any necessary and appropriate applications, motions, draft orders, other pleadings, notices, schedules and other documents, and review financial and other reports to be filed in the Chapter 11 cases;

(c) advise the Debtors concerning, and prepare responses to, applications, motions, other pleadings, notices and other papers that may be filed and served in the Chapter 11 cases;

(d) advise the Debtors with respect to, and assist in the negotiation and documentation of, financing agreements, debt and cash collateral orders and related transactions;

(e) review the nature and validity of any liens asserted against the Debtors' property and advise the Debtors concerning the enforceability of the liens;

(f) advise the Debtors regarding their ability to initiate actions to collect and recover property for the benefit of their estates;

(g) counsel the Debtors in connection with the formulation, negotiation and promulgation of a plan or plans of reorganization and related documents;

(h) advise and assist the Debtors in connection with any potential property dispositions;

(j) assist the Debtors in reviewing, estimating and resolving claims asserted against the Debtors' estates;

(k) commence and conduct any and all litigation necessary or appropriate to assert rights held by the Debtors, protect assets of the Debtors' chapter 11 estates or otherwise further the goal of completing the Debtors' successful reorganization;

(l) provide general corporate, litigation, regulatory and other nonbankruptcy services as requested by the Debtors; and

(m) appear in Court on behalf of the Debtors as needed in connection with the foregoing and otherwise; and

(n) perform any other necessary or appropriate legal services in connection with the Chapter 11 cases for or on behalf of the Debtors.

Mr. Stalker assures the Court that Hodgson Russ and Jones Daywill function cohesively to ensure that legal services providedto the Debtors by each firm are complementary rather thanduplicative.

The Debtors will pay Hodgson Russ on an hourly basis inaccordance with its ordinary and customary hourly rates:

The Debtors will reimburse the firm of its actual and necessaryout of pocket expenses.

Garry M. Graber, Esq., a partner at Hodgson Russ LLP, in Buffalo,New York, relates that during the period from thePTS I emergence date to the PTS II Petition Date, the Debtors havepaid Hodgson Russ $65,784 as compensation and reimbursement forprofessional services performed and expenses.

Mr. Graber assures the Court that the firm is a "disinterestedperson" as defined in Section 101(14) of the Bankruptcy Code andas required by Section 327(a) of the Bankruptcy Code.

About Performance Transportation

Performance Transportation Services Inc. is the second largesttransporter of new automobiles, sport-utility vehicles and lighttrucks in North America, and operates under three keytransportation business lines including: E. and L. Transport,Hadley Auto Transport and Leaseway Motorcar Transport.

The company and 13 of its affiliates previously filed for Chapter11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06-00107). The Court confirmed the Debtors' plan on Dec. 21, 2006,and that plan became effective on Jan. 29, 2007. Garry M. Graber,Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Dayrepresented the Debtors in their retructuring efforts. When theDebtor filed for protection from their creditors it reported morethan $100,000,000 in total assets. It also disclosed owing morethan $100,000,000 to at most 10,000 creditors, including $708,679to Broadspire and $282,949 to General Motors of Canada Limited.

PERFORMANCE TRANS: Can Use All Cash Collateral of Secured Lenders-----------------------------------------------------------------Performance Transportation Services Inc. and its debtor-affiliatesobtained authority from the U.S. Bankruptcy Court for the WesternDistrict of New York to use all cash collateral of their securedlenders prior to the bankruptcy filing, provided that the use ofthe cash collateral will be limited to the types of expenditurescontained in the Debtors' budget.

The Hon. Lewis A. Kaplan held that the total disbursements for aparticular week may not differ from the total contained in theBudget by more 10% and revenues may be less than indicated,provided that Net Cash Flow as set forth in the Budget, must notfall more than $400,000 below the amount indicated in anyparticular week or $800,000 cumulatively.

Judge Kaplan said the secured lenders prior to bankruptcy filing,are entitled to adequate protection of their interest in the cashcollateral, to the extent that their interests in the collateralconstitute valid and perfected security interests and liens as ofthe bankruptcy filing, for and equal in amount to the aggregatediminution in value, if any, of the secured lenders' collateral.

The Debtors' right to use Cash Collateral will automaticallyterminate without further Court order:

(i) on Dec. 14, 2007, if the Final Cash Collateral Order has not been entered prior to that date;

(ii) upon prior written notice to the Debtors if the Debtors use cash collateral in violation of the budget;

(iii) if the Debtors fail to timely satisfy the Intermediate Milestones; or

(iv) a trustee under chapter 7 or 11 of the Bankruptcy Code, or an examiner with powers relating to the operation of the business that is not acceptable to the First Lien Agent and the Second Lien Agent will be appointed in any of the chapter 11 cases and the order appointing that trustee, responsible officer or examiner is not vacated within 30 days.

The Official Committee of Unsecured Creditors will have 60 daysfrom the Petition Date to file, on behalf of the Debtors' estatesobjections or complaints respecting the validity, extent,priority, avoidability or enforceability of the Prepetition Debtor the Prepetition Secured Lenders' prepetition liens and securityinterests.

About Performance Transportation

Performance Transportation Services Inc. is the second largesttransporter of new automobiles, sport-utility vehicles and lighttrucks in North America, and operates under three keytransportation business lines including: E. and L. Transport,Hadley Auto Transport and Leaseway Motorcar Transport.

The company and 13 of its affiliates previously filed for Chapter11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06-00107). The Court confirmed the Debtors' plan on Dec. 21, 2006,and that plan became effective on Jan. 29, 2007. Garry M. Graber,Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Dayrepresented the Debtors in their retructuring efforts. When theDebtor filed for protection from their creditors it reported morethan $100,000,000 in total assets. It also disclosed owing morethan $100,000,000 to at most 10,000 creditors, including $708,679to Broadspire and $282,949 to General Motors of Canada Limited.

PETROQUEST ENERGY: Moody's Lifts Corp. Family Rating to B3----------------------------------------------------------Moody's Investors Service upgraded PetroQuest Energy Inc.'sCorporate Family Rating to B3 from Caa1, its Probability ofDefault Rating to B3 from Caa1, and its senior unsecured noterating to Caa1 (LGD 4, 68%) from Caa2 (LGD 4, 68%). The ratingoutlook is stable. The ratings upgrade reflects PetroQuest'strack record over the last couple of years of growing productionand reserves and continued efforts by the company to diversify itsportfolio mix away from the very short lived Gulf coast basin andthe Gulf of Mexico shelf into longer lived properties.

PetroQuest has successfully achieved material production growthover the last couple of years, with production levels in the firstnine months of 2007, on average, 22% greater than 2006 levels. Inaddition, the company has grown proved developed reserves by about41% over the past three years. PetroQuest's success in growingits production has resulted in improving trends in its financialleverage, as measured by debt/production. Debt/average dailyproduction was $14,298 in the third quarter of 2007, down from$22,237 in 2005. While the company's financial leverage, asmeasured by debt/PD reserves, has remained high at $12.54/boe,Moody's expects increases in debt to be limited over the near-term, as the company is expected to maintain capital spendingwithin cash flow in 2008.

Management has continued to steadily diversify the company intolonger lived properties, with the goal of having long livedreserves represent 40-50% of its production profile and 75% of itsreserves. In 2002, 100% of the company's reserves and productionwere in the Gulf Coast and GOM, as compared to approximately 40%and 70%, respectively, as of Sept. 30, 2007. PetroQuest hasallocated 36% of its capital budget in 2007 to the Arkoma basin,followed by 31% in East Texas, 19% in the Gulf of Mexico, and 15%in South Louisiana, and in 2008 expects to allocate over half ofits capital budget to the Arkoma basin. PetroQuest expects thatapproximately 40% of its 2008 production will be generated fromthe Arkoma Basin and East Texas. Nevertheless, Moody's notes thatPetroQuest's efforts to diversify its portfolio have resulted inan increased focus on unconventional resource plays, which tend tobe capital intensive, and that the company remains in the veryearly learning stage on the Woodford and Fayetteville shales.Maintaining even flat production in unconventional plays can behighly capital intensive as a result of steep first yearproduction declines. In addition to high capital commitments, thecompany also faces productivity and commercial risks associatedwith its non-producing acreage in these plays.

The B3 Corporate Family Rating remains restrained by the company'ssmall scale in terms of total proven developed reserves andproduction, which despite portfolio diversification efforts,continues to have material concentrations in the Gulf Coast andGOM shelf, with reliance on two offshore fields for approximately48% of its production. The company's significant reliance on theGulf Coast basin and GOM shelf results in a particularly shortproved developed producing reserve life of about two years basedon annualized third quarter 2007 production. Given the risksassociated with the company's size and concentration, as well asits still early phase of evaluation and production results in theWoodford and Fayetteville shales, Moody's believes the B3 ratinghas minimal flexibility for any material increases in leverage.

The stable rating outlook assumes the company will limitincreases in financial leverage, as measured on a debt/PD reservebasis, and continue to mount production gains and successfullyreplace reserves at reasonable costs for the B3 rating.

While unlikely over the near-term, positive rating action over themedium term would likely be a function of increased scale anddiversification in tandem with the successful completion of itstransition to longer-lived properties, including establishing atrack record of consistent production and reserve growth atcompetitive costs. Acquisitions funded with sufficient equitythat add diversification and durability to the existing propertybase without materially pressuring leverage on the PD reserve basecould also be positive for the ratings.

The ratings or outlook could be pressured if capital productivitydeteriorates, if sequential quarterly production trends were tomaterially decline, or if leverage on PD reserves materiallyincreases.

REMY WORLDWIDE: Emerges from Chapter 11, Completes Sale of Knopf----------------------------------------------------------------Remy Worldwide Holdings Inc. has emerged from chapter 11protection less than 59 days after filing its pre-packaged plan ofreorganization and petitions.

As reported in the Troubled Company Reporter on Nov. 21, 2007, thepre-packaged plan of reorganization was confirmed by the U.S.Bankruptcy Court for the District of Delaware on November 20.

In conjunction with its emergence from chapter 11, Remy alsodisclosed that effective Dec. 6, the company has access to itsexit financing facility of up to $330 million, including a$120 million revolving credit facility and term loans of$210 million. The company emphasized that this will provide Remywith the liquidity required to continue to meet its financialneeds and operate its business in the coming years.

"[The Chapter 11 emergence] marks the start of a new chapter inRemy's history," John Weber, President and Chief Executive Officerof Remy, said. "In reaching this milestone Remy has effectivelyrestructured its debt and its commercial arrangements with GeneralMotors and as a result, strengthened its competitive position. Weare excited to move forward as a revitalized and reenergizedcompany."

RESIDENTIAL CAPITAL: Extends $750 Million Debt Securities Offering------------------------------------------------------------------Residential Capital, LLC reported an extension of the early tendertime for its cash tender offer for up to $750 million aggregateprincipal amount of its Floating Rate Notes due June 9, 2008,Floating Rate Notes due Nov. 21, 2008, 6.125% Notes due Nov. 21,2008, and Subordinated Floating Rate Notes due April 17, 2009.

The new early tender time is 5:00 p.m. EST on Dec. 12, 2007,unless extended by ResCap in its sole discretion. Holders mustvalidly tender their notes prior to the early tender time in orderto be eligible to receive the early tender premium of $30 per$1,000 principal amount of notes, which is included in the totalconsideration offered in the tender offer. The withdrawaldeadline has not been extended and, accordingly, notes tendered inthe tender offer may no longer be withdrawn. The tender offerexpiration time remains 12:00 midnight EST on Dec. 19, 2007,unless extended by ResCap in its sole discretion.

The tender offer is conditioned on the satisfaction of certainconditions. If any of the conditions are not satisfied or waived,ResCap is not obligated to accept for payment, purchase or payfor, and may delay the acceptance for payment of, any tenderednotes, in each event, subject to applicable laws, and mayterminate the tender offer.

The terms and conditions of the tender offer are described indetail in the Offer to Purchase dated Nov. 21, 2007, and therelated Letter of Transmittal, the terms and conditions of thetender offer set forth therein remain unchanged.

Banc of America Securities LLC and Citi are the dealer managersfor the tender offer. Global Bondholder Services Corporation isthe information agent and depositary. Deutsche Bank LuxembourgS.A. is the Luxembourg tender agent for the tender offer. Personswith questions regarding the tender offer should contact thedealer managers: Banc of America Securities LLC toll-free at (866)475-9886 or collect at (704) 386-3244 and Citi toll-free at (800)558-3745 or collect at (212) 723-6106, or the information agent,toll-free at (866) 294-2200.

About Residential Capital

Residential Capital LLC -- http://www.rescapholdings.com/-- is a real estate finance company, focused primarily on the residentialreal estate market in the United States, Canada, Europe, LatinAmerica and Australia. The company's diversified businesses coverthe spectrum of the U.S. residential finance industry, fromorigination and servicing of mortgage loans through theirsecuritization in the secondary market. It also provides capitalto other originators of mortgage loans, residential real estatedevelopers, and resort and timeshare developers.

Residential Capital is the home mortgage unit of GMAC FinancialServices, which is in turn wholly owned by GMAC LLC.

* * *

As reported in the Troubled Company Reporter on Nov. 5, 2007,Moody's downgraded to Ba3, from Ba1, its ratings on the seniordebt of Residential Capital LLC. The outlook is negative. Thisconcludes a rating review that was initiated on Aug. 16, 2007, atwhich time senior debt was downgraded from Baa3. This ratingaction follows ResCap's $2.3 billion loss in Q307.

At the same time, Standard & Poor's Ratings Services removed itsratings on Residential Capital LLC from CreditWatch, where theywere placed with negative implications on Oct. 17, 2007. S&P alsolowered its long-term counterparty credit rating on ResidentialCapital LLC to 'BB+/B' from 'BBB-/A-3'. The outlook is negative.

RCPC will use the proceeds of such term loan to repay in full the$167.4 million remaining aggregate principal amount of its 8-5/8%Senior Subordinated Notes, which matures on Feb. 1, 2008, and topay fees and expenses incurred in connection with suchtransaction. RCPC expects to close and fund the $170 millionSenior Subordinated Term Loan on Feb. 1, 2008.

The $170 million Senior Subordinated Term Loan from MacAndrews &Forbes will bear interest at the rate of 11% per annum, which willbe payable quarterly in cash, and will be unsecured andsubordinated to RCPC's senior debt, with a final maturity ofAug. 1, 2009.

MacAndrews & Forbes beneficially owns approximately 57% of thecompany's outstanding Class A common stock, 100% of the company'sClass B common stock and 60% of the company's combined outstandingshares of Class A and Class B common stock, which togetherrepresent approximately 74% of the combined voting power of suchshares.

About Revlon Inc.

Headquartered in New York City, Revlon Inc. (NYSE:REV) --http://www.revlon.com/-- conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer ProductsCorporation and its subsidiaries, which manufactures, markets andsells an array of cosmetics, skincare, fragrances, beauty tools,hair color and personal care products. The company is a mass-market cosmetics brand.

* * *

As reported in the Troubled Company Reporter on Nov. 8, 2007,The company's Sept. 30, 2007, consolidated balance sheet showed$882.4 million in total assets and $2.03 billion in totalliabilities, resulting in a $1.15 billion in total shareholders'deficit.

Net loss in the third quarter of 2007 was $10.4 million, comparedwith a net loss of $100.5 million in the third quarter of 2006.

RH DONNELLEY: Board Authorizes $100 Mil. Common Stock Purchase--------------------------------------------------------------R.H. Donnelley Corporation's board of directors has authorized thepurchase of up to $100 million of its common stock over the next12 months.

These purchases will be made based on market conditions and otherfactors and may be made or suspended at any time.

According to Bloomberg, the Debtors are seeking the extensionto give buyers more time to have all the information they needto evaluate how much to bid.

The funds, Bloomberg says, are selling more than 1,000 lifeinsurance policies in the total face amount of $2.7 billion.

The public sale of the policies was previously moved from Nov. 9,2007, to Dec. 10, 2008.

As reported in the Troubled Company Reporter on Oct. 8, 2007, theCourt approved the procedures proposed by the Debtors for the saleof those policies, which constitutes all or substantially all ofthe Debtors' assets.

To participate in the auction, initial overbids must be in anamount of at least $1 million for any Ritchie I Asset Pool,$.5 million for any Ritchie II Asset Pool and $3 million for abid on all the assets.

Based in Dublin, Ireland, Ritchie Risk-Linked Strategies Trading(Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading(Ireland) II Ltd. -- http://www.ritchiecapital.com/-- are Dublin- based funds of hedge fund group Ritchie Capital ManagementLLC. The Debtors were formed as special purpose vehicles toinvest in life insurance policies in the life settlement market.The Debtors filed for Chapter 11 protection on June 20, 2007(Bankr. S.D.N.Y. Case Nos. 07-11906 and 07-11907). Allison H.Weiss, Esq., David D. Cleary, Esq., and Lewis S. Rosenbloom, Esq.,at LeBoeuf, Lamb, Greene & MacRae, LLP represent the Debtors intheir restructuring efforts. No Official Committee of UnsecuredCreditors has been appointed to date. When the Debtors filed forbankruptcy, they listed estimated assets and debts of more than$100 million. The Debtors' exclusive period to file a Chapter 11plan expires on Jan. 16, 2008.

The upgrade reflects Riverside's better than expected operatingresults that have been sustained since the casino, hotel andresort opened in August 2006. Moody's expects year-end 2007 debtto EBITDA and EBITDA to interest to approximate 3.9x and 2.7x,respectively. Riverside's proximity to Cedar Rapids has enabledthe property to establish a stable and growing customer base.Additionally, Riverside has been able to grow despite the additionof new gaming supply to the north (Isle of Capri-Waterloo) andseveral upgraded facilities at existing properties to the east.

The stable ratings outlook anticipates continued modest growth inthe central Iowa market and no material new competition in theforeseeable future.

Riverside Casino and Golf Resort, LLC is the single operating andwholly-owned subsidiary of Washington County Casino Resort, LLC.Riverside owns a casino, hotel and golf resort located inWashington County, Iowa. The property, which cost $110 million toconstruct, began operations on Aug. 31, 2006, and features a58,000 square foot casino, a 200 room hotel, championship golfcourse, 1,200 seat convention center and 2,400 parking spaces.

SCO GROUP: Court Approves Tanner LLC as Accountant--------------------------------------------------The SCO Group Inc. and its affiliate, SCO Operations Inc.,obtained authority from the U.S. Bankruptcy Court for the Districtof Delaware to employ Tanner LC as their accountants.

As reported in the Troubled Company Reporter on Nov. 8, 2007,Tanner LC is expected to perform an audit of the Debtors'consolidated financial statements for the year ending Oct. 31,2007, and to assist the Debtors in reviewing their financialstatements and other documents necessary for the Securities andExchange Commission submissions.

Kent M. Bowman, an auditor at Tanner LC, told the Court theDebtors agreed to pay an estimated amount of approximately$196,000. The firm's reviews of the 10-Q's will bill a fixed feeof $22,500 per 10-Q report. For all other services in connectionwith the services rendered, the firm will bill at the normalcustomary rate.

To the best of the Debtors' knowledge, the firm is "disinterested"as that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-basedsystems, offering SCO OpenServer for small tomedium business and UnixWare for enterprise applications anddigital network services. The company has office locations inAustralia, Austria, Argentina, Brazil, China, Japan, Poland,Russia, the United Kingdom, among others.

The company and its affiliate, SCO Operations Inc., filed forChapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. LeadCase No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as theDebtors' claims and noticing agent. The U.S. Trustee failed toform an Official Committee of Unsecured Creditors in these casesdue to insufficient response from creditors. The Debtors'exclusive period to file a chapter 11 plan expires on March 12,2008. The Debtors' schedules of assets and liabilities showedtotal assets of $9,549,519 and total liabilities of $3,018,489.

SCO GROUP: Court Permits CFO Solutions to Provide Company w/ CFO----------------------------------------------------------------The SCO Group Inc. and its affiliate, SCO Operations Inc.,obtained authority from the U.S. Bankruptcy Court for the Districtof Delaware, to employ CFO Solutions LC to provide their companywith a chief financial officer.

As reported in the Troubled Company Reporter on Nov 8, 2007,CFO Solutions provides consulting services and temporary employeesto staff CFO and other key financial positions in companies.

b) develop and evaluate various restructuring alternatives and negotiate with key creditors and other stakeholders;

c) assist in day-to-day oversight and management of the Debtors' operations; and

d) counsel and assist the Debtors through the marketing and sale process, or other reorganization strategies, including the identification of the highest and best transaction, and to assist with such other matters as may be requested that fall within the firm's expertise and mutually agreeable.

The Debtors told the Court that the firm will charge $150 perhour. Of the total amount, Mr. Nielsen will receive $105 throughthe Debtors' payroll and $45 will be paid to the firm.

The Debtors also related that they agreed to pay the firm anamount not to exceed 30% of Mr. Nilesen's annual salary, minus allamounts paid to the firm, as of the date of termination as aplacement fee, if Mr. Nielsen will be terminated prior to theexpiration of the six month term.

Furthermore, the Debtors agreed to pay the firm $40,000 minus 70%of any severance amounts paid to Mr. Nielsen, if the Debtorsterminate Mr. Nielsen, without cause, or if Mr. Nielsen is unableto perform the services.

If the Court does not approve the hourly payments to the firmunder the agreement, the Debtors have agreed to compensate thefirm 30% of Mr. Nielsen's annual base salary, as a placement feefor a chief operating officer.

To the best of the Debtors' knowledge, the Mr. Nielsen holdsno interest adverse to the Debtors' and their estates and is"disinterested" as that term is defined in Section 101(14) of theBankruptcy Code.

The company and its affiliate, SCO Operations Inc., filed forChapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. LeadCase No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as theDebtors' claims and noticing agent. The U.S. Trustee failed toform an Official Committee of Unsecured Creditors in these casesdue to insufficient response from creditors. The Debtors'exclusive period to file a chapter 11 plan expires on March 12,2008. The Debtors' schedules of assets and liabilities showedtotal assets of $9,549,519 and total liabilities of $3,018,489.

SOFA EXPRESS: Files for Chapter 11 Protection in Nashville----------------------------------------------------------Sofa Express Inc. filed for bankruptcy protection with the U.S.Bankruptcy Court for the Middle District of Tennessee inNashville, Heath E. Combs and Cling Engel of Furniture Todayreport.

According to Furniture Today, the company sent letters togovernment officials and its store managers this week, notifyingthem that they would close down their retail stores and terminatetheir services due to its financial condition, and to "secure itsfinancial future".

Based in Groveport, Ohio, Sofa Express Inc. dba Sofa Express andMore -- http://www.sofaexpress.com/-- manufactures and retails home furniture, beds, and related accessories, and owns 44 retailstores in Ohio, Tennessee, Florida, and the Carolinas. Thecompany ranks at number 40 on 2007's Furniture/Today Top 100ranking of U.S. furniture stores based on sales.

TECO ENERGY: Moody's Lifts Debt Rating to Baa3 from Ba1-------------------------------------------------------Moody's Investors Service upgraded the senior unsecured debtrating of TECO Energy, Inc. to Baa3 from Ba1 and upgraded thesenior unsecured debt rating of TECO Finance, Inc., which is fullyand unconditionally guaranteed by TECO, to Baa3 from Ba1. Therating outlook for TECO and TECO Finance is stable. Thisconcludes the review of TECO's ratings initiated on Apr. 19, 2007.Moody's also affirmed the ratings of Tampa Electric Company (Baa2senior unsecured) and changed its rating outlook to positive fromstable.

The upgrades are prompted by the closing of the sale of TECO'stransport subsidiary for a purchase price of $405 million, subjectto working capital adjustments, and the company's continueddeleveraging at the parent company level. Net proceeds from thesale are expected to be approximately $375 million. "Proceedsfrom the TECO Transport sale will facilitate TECO's debt reductionprogram and contribute to an improvement in financial metrics tosustainable investment grade levels going forward," said MichaelG. Haggarty, Vice President and Senior Credit Officer.

The upgrade is also prompted by TECO's intention to retire anadditional $300 million of parent company debt due 2010 with thesale proceeds through a tender and exchange offer for parentcompany debt. This debt reduction will be in addition to $357million of parent company debt already retired in early 2007, aswell as the repayment of $111 million of parent guaranteed TECOTransport debt at maturity in September 2007. "As a result of thetender and exchange offer, TECO will have a more manageable debtmaturity profile over the next several years as it not only paysdown debt, but also extends the maturity of $300 million of parentcompany debt due in 2011 and 2012 by five years," said Haggarty.

The upgrade considers the reduced business risk throughout theTECO organization following both the sale of TECO Transport andthe expiration of synfuel related tax credits at the end of 2007.These positive developments come after several years during whichthe company was proactive in exiting its merchant generatingactivities and putting renewed focus on its core businesses, whichinclude the regulated utilities Tampa Electric and Peoples Gas,coal producer TECO Coal, and electric power subsidiary TECOGuatamala, which consists of a part ownership of a distributionutility and two power plants. TECO's remaining businesses aremore reliable and less volatile sources of cash flow for theparent compared to the company's previous business mix.

The stable outlook on the ratings of TECO and TECO Financereflects Moody's expectation that lower debt levels at the parentcompany will allow the company to maintain credit metrics at lowinvestment grade levels, including operating cash flow prior tochanges in working capital interest coverage in the 4.0 timesrange and operating cash flow prior to changes in working capitalto debt in the 20% range. The stable outlook also considers loweranticipated cash flow volatility from its remaining businesses anda large capital expenditure program at Tampa Electric, which willrequire some equity infusions from the parent company.

The revision of the rating outlook of Tampa Electric to positivefrom stable reflects the utility's strong financial and operatingperformance; lower business risk and reduced debt levels at theparent company following the sale of TECO Transport and theexpiration of synfuel tax credits; a constructive regulatoryenvironment in the state of Florida; and the company's decision toindefinitely delay construction of an integrated gasificationcombined cycle or IGCC plant at its Polk County site. Thisdecision will reduce the aggregate level of Tampa Electric'sprojected capital expenditures considerably over the next severalyears while lowering the risk and uncertainty associated withcarbon capture and sequestration technology and potentiallysubstantial project cost increases. A rating upgrade of theutility could be considered if there is additional clarity on thesize and timing of its capital expenditure program and themagnitude and regulatory response to potential rate increasesrelated to these capital expenditures.

TECO Energy, Inc. is a diversified energy company headquartered inTampa, Florida and the parent company of Tampa Electric Companyand TECO Finance, Inc.

THORPE INSULATION: ERC and Westport Oppose Employment of Firms--------------------------------------------------------------The Employers Reinsurance Corporation and Westport InsuranceCompany, parties-in-interest, ask the U.S. Bankruptcy Court forthe Central District of California to deny the request of ThorpeInsulation Company and Pacific Insulation Company to employ:

a. Snyder Miller & Orton as special litigation counsel;

b. Morgan Lewis & Bockius LLP as special insurance counsel; and

c. the Honorable Charles B. Renfrew (ret.) as futures representative.

The complainants' substantive memoranda in opposition is yet to befiled with the Court.

As reported in the Troubled Company Reporter on Dec. 4, 2007,Pacific had asked the Court for permission to appoint HonorableCharles B. Renfrew to represent future asbestos claimants.

Further, Thorpe had sought for authority to employ Snyder Miller &Orton LLP as their special litigation counsel. Thorpe expectedSnyder to work in conjunction with Morgan, Lewis & Bockius LLP, inproviding legal services to the Debtor in the management andresolution of its asbestos-related liabilities. Thorpe has signeda special fee agreement with Morgan dated Jan. 13, 2006, andexecuted by the Debtor on Jan. 16, 2006.

Long Beach, California-based Thorpe Insulation Company, formerlyPlant Insulation Company, was incorporated in April 10, 1948. Itsupplied and distributed asbestos thermal insulation in SouthernCalifornia before about 1972. The company's products includedpipe and boiler insulation, asbestos cloth and insulating mud.After 1972, some of Thorpe's operations also involved asbestos andlead abatement, including repairing insulation that containedasbestos at commercial and industrial sites.

On or about Dec. 17, 2004, Thorpe's lender, Pacific Funding GroupLLC, sold its collateral at a foreclosure sale to FarwestInsulation Consulting owned by Eric and David Fults. Followingthe foreclosure, Thorpe ceased operation of its business. Todate, Thorpe has been subjected to about 12,000 claims andlawsuits related to asbestos.

Los Angeles-based Pacific Insulation Company was incorporated inCalifornia by Thorpe on May 23, 2000, to be its wholly ownedsubsidiary. On Oct. 1, 2000, Pacific transferred 100% of itsshares to Thorpe in exchange for Thorpe's materials divisionassets. Thorpe's sole shareholders and board members, Robert W.Fults and Linda Fults, own 50.1% and 49.9% of Pacific,respectively. Pacific is a southwest commercial and industrialinsulation distributor and fabricator with locations in Southernand Northern California, Arizona, and Nevada. It provides pipe,air handling, fire barrier, board and blanket insulation as wellas adhesives, mastics and sealants. Pacific has never installedor sold any materials containing asbestos. It currently has 55full-time employees.

In addition, Chicago wants the Court to defer any hearing on Mr.Renfrew's request to retain Fergus Law Firm as counsel, which wasinitially set for Dec. 12, 2007.

Chicago relates that Mr. Renfrew's request to retain professionalsto serve him are conditioned upon his appointment as futuresrepresentative, which has not yet been approved by the Court.

Specifically, Chicago intends to oppose Thorpe's application tohave Mr. Renfrew appointed as futures rep for both Thorpe andPacific. Chicago contests that there is conflict of interestbecause Thorpe, Pacific and other Fults family-owned company,Farwest, had hired and paid Mr. Renfrew and his counselprepetition to serve as contractual futures rep. Therefore,Chicago says, he is disqualified from appointment postpetitiongiven the requirements that "a futures rep must be strictlyindependent of all entities whose interests are or may be adverseto those of future claimants".

As reported in the Troubled Company Reporter on Dec. 5, 2007, Mr.Renfew relates that he requires the services of an expert whocan provide an opinion with respect to the number and severity ofanticipated future claims based upon the unique history of thecompany, its prior claiming history and peer reviewedepidemiological studies. Without this advice, it is not possiblefor the futures representative to evaluate whether any proposedplan of reorganization will provide "reasonable assurances thatthe trust will value, and be in a financial position to pay,present claims and future demands that involve similar claims insubstantially the same manner."

The TCR said on Dec. 4, 2007, that Pacific had asked the Court forpermission to appoint Mr. Renfrew as its futures representative.Mr. Renfrew will represent future asbestos claimants.

Mr. Renfew may retain attorneys and other professionals subject toCourt approval. Compensation of Mr. Renfrew and his retainedprofessionals will be payable subject to Court approval.

About Thorpe Insulation

Long Beach, California-based Thorpe Insulation Company, formerlyPlant Insulation Company, was incorporated in April 10, 1948. Itsupplied and distributed asbestos thermal insulation in SouthernCalifornia before about 1972. The company's products includedpipe and boiler insulation, asbestos cloth and insulating mud.After 1972, some of Thorpe's operations also involved asbestos andlead abatement, including repairing insulation that containedasbestos at commercial and industrial sites.

On or about Dec. 17, 2004, Thorpe's lender, Pacific Funding GroupLLC, sold its collateral at a foreclosure sale to FarwestInsulation Consulting owned by Eric and David Fults. Followingthe foreclosure, Thorpe ceased operation of its business. Todate, Thorpe has been subjected to about 12,000 claims andlawsuits related to asbestos.

Los Angeles-based Pacific Insulation Company was incorporated inCalifornia by Thorpe on May 23, 2000, to be its wholly ownedsubsidiary. On Oct. 1, 2000, Pacific transferred 100% of itsshares to Thorpe in exchange for Thorpe's materials divisionassets. Thorpe's sole shareholders and board members, Robert W.Fults and Linda Fults, own 50.1% and 49.9% of Pacific,respectively. Pacific is a southwest commercial and industrialinsulation distributor and fabricator with locations in Southernand Northern California, Arizona, and Nevada. It provides pipe,air handling, fire barrier, board and blanket insulation as wellas adhesives, mastics and sealants. Pacific has never installedor sold any materials containing asbestos. It currently has 55full-time employees.

The affirmations reflect a satisfactory relationship betweencredit enhancement and future loss expectations and affectapproximately $17.5 million in outstanding certificates. Thedowngrades, affecting approximately $19.1 million, are the resultof deterioration in the relationship between CE and expectedlosses.

Both transactions have experienced monthly losses that haveexceeded excess spread in at least 11 of the last 12 months,causing the overcollateralization amount to be at or near zero. Asa result, the class B bonds have incurred principal writedowns,thus reducing the CE of the M-2 bonds. Series 2002-1 and 2002-2have serious delinquencies (loans delinquent more than 60 days,inclusive of loans in foreclosure, bankruptcy, and real estateowned) of 46.79% and 50.89%, respectively, and current cumulativelosses of 14.04% and 10.77%, respectively.

The collateral for the above series consists of performing, sub-performing and re-performing fixed- and adjustable-rate mortgageloans, secured by first and second liens on residentialproperties. All of the loans are serviced by Select PortfolioServicing, rated 'RSS2+' by Fitch. Truman Capital acquired theloans from various originators.

Series 2002-1 and 2002-2 are seasoned 67 and 59 months,respectively, and their pool factors are approximately 15% and14%, respectively.

UNISYS CORP: Considers Offering $250 Million of Senior Notes------------------------------------------------------------Unisys Corporation intends to offer, subject to market and otherconditions, $250 million of senior notes. The company plans touse the net proceeds to redeem, the $200 million of its 7-7/8%senior notes due April 2008 and for general corporate purposes.

The offering will be marketed by a group of underwriters for whichBear, Stearns & Co. Inc., Banc of America Securities LLC andCitigroup Global Markets Inc., will act as joint book-runningmanagers.

A copy of the preliminary prospectus supplement, the accompanyingprospectus and the final prospectus supplement, when available, isavailable free of charge by contacting:

Unisys reported a third-quarter 2007 net loss of $31.0 million.Tax expense in the quarter increased to $36.8 million from$16.0 million in the third quarter of 2006. The company's third-quarter 2007 results also included $19.3 million in other expense,compared with $400,000 of other income in the year-ago quarter.

* * *

As reported in the Troubled Company Reporter on Aug. 22, 2007,Moody's Investors Service placed the B2 corporate family andsenior unsecured ratings for Unisys Corporation on review forpossible downgrade.

UNITEDHEALTH GROUP: Owns Up to Errors in Customer Service Relation------------------------------------------------------------------UnitedHealth Group Inc. has confessed to the mistakes it made inattending to problems relating to customer service, according tothe Associated Press. However, the company is initiatingimprovements on its poor customer service by:

* showing doctors and patients, on the day of a doctor's visit, how a claim will be paid,

In addition, the company admits that the acquisition of PacifiCarein 2005, which lost 145,000 members due to targeted re-positioningactions, contributed to the dissent of doctors and patients, APrelates.

Based in Minneapolis, Minnesota, UnitedHealth Group Inc.(NYSE: UNH) -- http://www.unitedhealthgroup.com/-- is a diversified health and well-being company which offers offers abroad spectrum of products and services through six operatingbusinesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise,Specialized Care Services and Ingenix. Through its family ofbusinesses, UnitedHealth Group serves approximately 70 millionindividuals nationwide.

UNITEDHEALTH GROUP: Current & Former Execs Agree to Give Up $900MM------------------------------------------------------------------UnitedHealth Group Inc. disclosed that the Special LitigationCommittee, an independent committee comprised of two formerMinnesota Supreme Court Justices, has concluded its review ofclaims relating to the company's historical stock option practicesbrought against certain of the company's current and formerofficers and directors in federal and state derivative lawsuits.Based on its exhaustive, 15 month review, the SLC reachedsettlement agreements on behalf of the company with UnitedHealthGroup's former Chairman and CEO William W. McGuire, M.D., formerGeneral Counsel David J. Lubben, and former Director William G.Spears.

In addition, the SLC concluded that all claims against all nameddefendants in the derivative suits, including current and formerUnitedHealth Group officers and directors should be dismissed.The SLC's conclusions are reflected in a final report delivered tothe United States District Court for the District of Minnesota andthe Hennepin County District Court, State of Minnesota.

Under the McGuire settlement agreement, Dr. McGuire will:

* surrender to UnitedHealth Group certain stock options to acquire 9,223,360 shares of company stock, which the SLC has valued at approximately $320 million;

* surrender his interest in the company's Supplemental Executive Retirement Plan, valued at approximately $91 million;

* surrender to the company approximately $8 million in his Executive Savings Plan Account; and

* relinquish claims to other post-employment benefits under his Employment Agreement.

The amounts, combined with a previous repricing of all stockoptions awarded to Dr. McGuire from 1994 to 2002, result in atotal value to be relinquished by Dr. McGuire in excess of$600 million.

Under the Lubben settlement agreement, Mr. Lubben will:

* surrender to UnitedHealth Group his stock options to acquire 273,000 shares of Company stock, which the SLC has valued in excess of $3 million; and

* repay to the company $20.55 million of the compensation realized by him as a result of his March 2007 exercise of stock options.

These amounts, combined with a previous repricing of stock optionsawarded to Mr. Lubben, result in a total value relinquished by Mr.Lubben of approximately $30 million.

Under the Spears settlement agreement, the fair settlement valueof the company's claims against him will be determined by bindingarbitration.

The SLC has valued the total amounts to be relinquished pursuantto these settlement agreements, together with the value previouslyand voluntarily relinquished by current and former executivesthrough the surrender and repricing of options, to beapproximately $900 million.

The settlement agreements and the dismissal of the derivativeactions are subject to notice to the company's shareholders andCourt approval.

"The Board of Directors, on behalf of the company and itsshareholders, would like to express its deep appreciation for theextraordinary work of Justices Blatz and Stringer, the members ofthe independent, special committee created by the Board,throughout this lengthy and thorough process," Richard Burke,Chairman of the Board of Directors, said.

The SLC is comprised of two retired Minnesota State Supreme Courtjustices, former Chief Justice Kathleen Blatz and former JusticeEdward Stringer. Pursuant to Minnesota law, the Board ofDirectors created the independent SLC and delegated to it completeauthority to review the claims in the derivative litigation anddetermine whether those claims should be pursued on behalf of thecompany.

Based in Minneapolis, Minnesota, UnitedHealth Group Inc.(NYSE: UNH) -- http://www.unitedhealthgroup.com/-- is a diversified health and well-being company which offers offers abroad spectrum of products and services through six operatingbusinesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise,Specialized Care Services and Ingenix. Through its family ofbusinesses, UnitedHealth Group serves approximately 70 millionindividuals nationwide.

UNIVERSAL PROPERTY: Posts $41.7 Million Net Loss in Third Quarter-----------------------------------------------------------------Universal Property and Development Corp. reported a net loss of$41.7 million on total revenue of $12.3 million for the thirdquarter ended Sept. 30, 2007, compared with a net loss of$1.4 million on total revenue of $141,217 in the same period lastyear.

For the nine months ended Sept. 30, 2007, the company reported anet loss of $102.1 million on total revenues of $20.6 million,compared with a net loss of $2.1 million on total revenues of$343,848 in the same period last year.

For the three and nine months ended Sept. 30, 2007, natural gassales revenue was $446,880 and $711,622, compared to $35,528 and$70,005 for the same period during 2006. The revenues were theresult of production in the Canyon Creek, Catlin and Heartlandsubsidiaries. The increase was primarily due to Catlin andHeartland production as in 2006 Catlin's Palo Pinto Acquisitionand Heartland were not yet acquired.

For the three and nine months ended Sept. 30, 2007, oil andcondensate sales revenue was $11.8 million and $19.9 millioncompared to $105,689 and $273,843 for the same periods during2006. The increase in revenue was primarily the result of thesale of condensate in the Continental subsidiary that was acquiredin 2007.

The primary reason for the increase in net loss for both the threeand nine months ended Sept. 30, 2007, is the loss onsettlement of notes payable for common stock on Continental.

At Sept. 30, 2007, the company's consolidated balance sheet showed$22.8 million in total assets, $15.3 million in total liabilities,$839,106 in minority interest, and $6.7 million in totalshareholders' equity.

Going Concern Doubt

KBL LLP, in New York expressed substantial doubt about UniversalProperty and Development Corporation's ability to continue as agoing concern after auditing the company's consolidated financialstatements as of the years ended Dec. 31, 2006 and 2005. Theauditing firm reported that the company has suffered recurringlosses from operations, and is dependent upon the sale of equitysecurities to provide sufficient working capital to maintaincontinuity.

About Universal Property

Headquartered in Juno Beach, Fla., Universal Property Developmentand Acquisition Corporation (OTC BB: UPDA.OB) is engaged in theoil and natural gas acquisition, production, and developmentindustry. UPDA currently has operations in the State of Texas.

URS CORP: Completed WGII Deal Cues Moody's to Cut Rating to Ba2---------------------------------------------------------------Moody's Investors Service downgraded the Corporate Family Ratingof URS Corporation to Ba2 from Ba1 following the company'sannouncement it had completed the acquisition of Washington GroupInternational, Inc. The ratings outlook is stable. This ratingaction concludes the review for possible downgrade initiated onMay 30, 2007 following the announcement that URS had entered intoa definitive agreement for the acquisition of Washington in a cashand stock transaction valued at approximately $2.6 billion.Additional instrument rating actions are detailed below.

Moody's took these rating actions:

-- Corporate Family Rating to Ba2 from Ba1 -- Probability of Default Rating to Ba2 from Ba1

These ratings which were prospectively assigned to debt issued atURS Corporation are now made definitive:

The downgrade of the Corporate Family Rating to Ba2 following thecompletion of the transaction reflects the weakened creditmetrics, change in operating profile, and integration riskassociated with the acquisition of Washington Group International.The credit metrics will be weak for the rating category and therating contemplates significant debt reduction, synergy savingsand substantial realization of the contract backlog over theintermediate term as well as an absence of unexpected costsrelating to integration. Strengths in URS's pro-forma competitiveprofile include annual revenues of approximately $8.4 billion,increasing breadth of services offered and exposure to WashingtonGroup's fast-growing global markets. The acquisition will alsoadd additional diversity to URS's end markets and increase thecompany's industry-leading global scale and nuclear powercapability.

Based in San Francisco, California, URS Corporation is anengineering firm that provides a range of professional planning,design, program and construction management, and operations andmaintenance services. Revenues for the twelve months endedSept. 30, 2007 were approximately $4.7 billion.

Based in Boise, Idaho, Washington Group International, Inc.provides design, engineering, construction, facilities andoperations management, environmental remediation, and miningservices to public and private sector clients in the United Statesand internationally. It operates through six segments: Power,Infrastructure, Mining, Industrial/Process, Defense, and Energy &Environment. Revenues for the twelve months ended Sept. 30, 2007were approximately $3.7 billion. Following the acquisition,Washington Group became a division of URS Corporation (WashingtonDivision).

VALENTEC SYSTEMS: Sept. 30 Balance Sheet Upside-Down by $8.1 Mil.-----------------------------------------------------------------Valentec Systems Inc.'s consolidated balance sheet showed$24.3 million in total assets and $32.4 million in totalliabilities, resulting in an $8.1 million total stockholders'deficit.

At Sept. 30, 2007, the company's consolidated balance sheet alsoshowed strained liquidity with $15.9 million in total currentassets available to pay $32.1 million in total currentliabilities.

The company reported a net loss of $2.5 million on revenues of$2.9 million for the third quarter ended Sept. 30, 2007, comparedwith a net loss of $1.9 million on revenues of $2.2 million in thesame period of 2006.

Loss from operations increased to $1.7 million during the threemonths ended Sept. 30, 2007, compared with loss from operations of$935,953 in the 2006 quarter, mainly as a result of an increase incost of goods sold as a percentage of revenues and increasedoperating expenses.

Revenues for the nine months ended Sept. 30, 2007, were$9.8 million compared to $13.0 million for the nine months endedSept. 30, 2006, a decrease of $3.2 million or 24.6%. The decreasein revenues is due to program delays experienced by Valentec'ssubcontractors on the AMMO and Keshet Contacts as well as delayscaused by the fire on the company's 40mm manufacturing facility onAug. 14, 2006.

The company had a net loss for the nine months ended Sept. 30,2007 of $5.9 million compared to a net loss of $4.0 million forthe nine months ended Sept. 30, 2006. This was due primarily toan increase in interest and financing expenses to support theforeign military programs, an increase in cost of goods sold as aresult of resolving sub-tier supplier issues on specificcontracts, and delay in restarting of its 40mm manufacturingfacility as a result of the fire.

Liquidity and Capital Resources

For the nine months ended Sept. 30, 2007, the company had anegative cash flow from operations of $1.2 million as compared toa negative cash flow from operations of $4.9 million for the ninemonths ended Sept. 30, 2006. At Sept. 30, 2007, the company hadoutstanding borrowings from non-related parties of $13.5 million.

The company has entered into a Master Factoring Agreement withRockland Credit Finance as an additional source of financing. Acredit line of $10,000,000 was established to provide additionalworking capital. At Sept. 30, 2007, $8,378,343 was outstandingunder this line of credit. Under the terms of the agreement,Rockland Credit Finance has the option to increase the credit lineto $15,000,000 if the company has the collateral of accountsreceivable and unbilled accounts receivable to support theincrease.In addition, the company has other lines of credit of $4,500,000in the aggregate. At Sept. 30, 2007, $4,430,000 was outstandingunder these lines of credit.

As reported in the Troubled Company Reporter on May 24, 2007, Webb& Company, P.A., of Boynton Beach, Florida, expressed substantialdoubt about Valentec Systems Inc.'s ability to continue as a goingconcern after auditing the company's consolidated financialstatements for the years ended Dec. 31, 2006, and 2005. Theauditor pointed to the company's working capital deficiency andnegative cash flows from operations.

The company currently does not have enough cash to continueoperations for twelve months.

About Valentec Systems

Minden, Louisiana-based Valentec Systems, Inc. -- (OTC BB: VSYNE)-- http://www.valentec.net/-- is a supplier of mission-critical conventional ammunition, pyrotechnic and related defense products.The company markets its products to the United States Army,Israeli Defense Forces and other Ministries of Defense in friendlynations around the world.

VERIFONE INC: To Restate 2007 Quarterly Financial Statements------------------------------------------------------------Following a review by and on the recommendation of management,VeriFone Holdings, Inc., has concluded that its unaudited interimconsolidated financial statements for the three months endedJan. 31, 2007, the three and six months ended April 30, 2007 andthe three and nine months ended July 31, 2007 should no longer berelied upon, principally due to errors in accounting related tothe valuation of in-transit inventory and allocation ofmanufacturing and distribution overhead to inventory, each ofwhich affects VeriFone's reported costs of net revenues. Therestatements are anticipated to correct errors that overstatedpreviously reported inventories in material amounts as of Jan. 31,2007, April 30, 2007 and July 31, 2007, and understated cost ofnet revenues in material amounts for the three month periods endedJan. 31, 2007, April 30, 2007, and July 31, 2007. Accordingly,investors are cautioned not to rely on VeriFone's historicalfinancial statements and earnings press releases and similarcommunications for the periods ended Jan. 31, 2007, April 30,2007, and July 31, 2007.

Based on its review to date, management currently anticipates thatthe restatement will result in reductions to previously reportedinventories of approximately $7.7 million, $16.5 million and$30.2 million as of Jan. 31, 2007, April 30, 2007 and July 31,2007, respectively, and reductions to previously reported pre taxincome of approximately $8.9 million, $7.0 million and $13.8million for the three month periods ended Jan. 31, 2007, April 30,2007 and July 31, 2007, respectively. VeriFone is currentlyevaluating the anticipated effect of the restatement on after-taxincome for those periods.

These estimates include corrections of other unrelated errorsdetected in the course of VeriFone's review to date, are based oncurrently available information and are subject to change duringthe course of the company's restatement process. While VeriFoneis not currently aware of other accounting errors requiringadjustment to any prior period financial statements, there can beno assurances that VeriFone or its independent registered publicaccounting firm will not find additional accounting errorsrequiring further adjustments in those or earlier periods.

VeriFone expects to report total revenues for the three and twelvemonths ended Oct. 31, 2007, of approximately $238 million and$904 million, respectively. VeriFone's management and the AuditCommittee of its Board of Directors have determined to delay therelease of full fourth quarter 2007 financial results that werescheduled to be released on Dec. 6, 2007, pending completion ofthe assessment of these errors and the restatements.

"I am very disappointed to have to bring you this news and amcommitted to ensuring that we promptly and thoroughly remedy thissituation and move forward with the business of delivering valueto our shareholders," Douglas G. Bergeron, Chairman and ChiefExecutive Officer, said. "I am committed to regaining yourconfidence in VeriFone."

VeriFone concluded that a restatement of its interim unauditedfinancial statements is required as a result of an internal reviewof in-transit inventory balances conducted in preparation forVeriFone's fiscal 2007 audit.

Upon completion of its assessment of these errors, VeriFoneintends to file amended Quarterly Reports on Form 10-Q for theperiods that will restate the previously issued financialstatements included therein. VeriFone currently estimates that itwill file these amended quarterly reports, together with itsAnnual Report on Form 10 K for the fiscal year ended Oct. 31,2007, in January 2008. However, VeriFone cannot be certain howmuch time will ultimately be required for it to complete therestatement process.

About VeriFone Holdings

Headquartered in San Jose, California, VeriFone Holdings, Inc.(NYSE: PAY) -- http://www.verifone.com/-- provides expertise, solutions and services that add value to the point of sale withmerchant-operated, consumer-facing and self-service paymentsystems for the financial, retail, hospitality, petroleum,government and healthcare vertical markets. VeriFone's secureelectronic payment solutions are designed to meet the needs ofmerchants, processors and acquirers in developed and emergingeconomies worldwide.

* * *

As reported in the Troubled Company Reporter on Sept. 18, 2007,Standard & Poor's Ratings Services revised its outlook on VeriFoneInc. to positive from stable, following continued positiveoperating trends. Ratings on the company, including the 'BB-'corporate credit rating, were affirmed.

VERIFONE INC: Financial Restatement Cues Moody's Ratings Review---------------------------------------------------------------Moody's Investors Service placed the corporate family and seniorsecured debt ratings of Verifone, Inc. under review for possibledowngrade following the company's recent announcement that it willrestate prior financial statements for the first three quarters ofthe fiscal year 2007 due to accounting errors associated with itsvaluation of inventories, prompting the company to issue astatement of non-reliance on prior financial reports. Inaddition, Verifone also announced that it will delay announcementof its Q4 2007 financial results. The review reflects theuncertainty surrounding the possible financial restatementsrelated to the accounting errors, indicating material weaknessesin the company's disclosure and internal control over financialreporting, as well as the potential impact on its liquidityposition.

The company said the restatement is principally due to errors inaccounting related to an overstatement of reported inventories andunderstated cost of net revenues, which is anticipated to resultin reductions of previously reported GAAP pre-tax income byapproximately $29.7 million for the first nine months of 2007,which is approximately 80% of its previously reported GAAP pre-taxincome of $37 million. GAAP pre-tax income also includes expensesrelated to amortization of purchased intangible assets and in-process research and development. Verifone is still evaluatingthe impact of the restatement on net income for those periods. Asper the management, there can be no assurances that Verifone orits independent registered public accounting firm will not findany additional accounting errors, requiring further adjustments.

In its review, Moody's will assess the progress of Verifone'sability to timely file financial statements ahead of reportingrequirements; its internal review of the accounting errors andsubsequent impact on gross margins, profitability and inventoryvaluation; the materiality of financial charges/restatements; andany potential liquidity issues. In addition, the review will alsoassess Verifone's capital structure stemming from the company'sissuance of unrated $316 million of 1.375% senior convertiblenotes and its impact to the existing senior secured debt ratings.

The ratings could be downgraded if any of these occurs:

1. The outcome of the internal investigation is materially detrimental to the company's cash flows and/or financial position

2. Identification of pervasive control weaknesses that cannot be remediated.

3. Liquidity position deteriorates due to business operations and/or acceleration of bank debt and/or convertible notes.

The ratings could be stabilized at the existing level, if theoutcome of the accounting review and financial restatements is notmaterially different from what the company has stated publicly todate and the company is current on its financial statement filingrequirements with respect to its credit agreement and convertiblenote indenture.

Moody's notes that Verifone maintains a cash and equivalentsbalance of $213 million as of July 31, 2007, and has good marketposition in the point of sale electronic payment solution market.As of July 31, 2007, the company had $238 million of seniorsecured term loan and $316 million of senior convertible notesoutstanding.

All three classes of notes carry fixed rate coupons. At the timeof closing, there is 8% over-collateralization and a 2% cashreserve. Wen V. Zhang, an Assistant Vice President in Moody'sStructured Finance Group, explained that the ratings are based onthe credit characteristics of the pool and the transaction'sstructural protections.

Moody's said that the Westgate timeshare receivables havehistorically higher charge-off rates when compared to largercompetitors. Compared with larger competitors in the timesharemarket such as Marriott, the credit quality of the timesharepurchasers and the more limited number of resort locations withinthe Westgate family contribute to the riskier credit profile ofthe pool of loans. The loans in this pool are based on selectioncriteria that are relatively more stringent than those used insome past Westgate transactions, and this, to some extent, is oneof the mitigating factors in this pool.

Timeshare receivables are loans to purchase deeded intervals atvacation resorts. The credit risk for this asset class must beanalyzed in light of the borrower's ability and willingness to paythe loan. The lack of significant underwriting standards and thehigh loan-to-sale price ratios are additional risk factorsrelative to other types of consumer assets.

Westgate owns and operates 28 timeshare resorts in 11 states. Theloans in this transaction were generated from its resorts inFlorida, its Flamingo Bay project in Las Vegas, the Westgate SmokyMountain Resorts in Gatlinburg, Tennessee, the Westgate HistoricWilliamsburg in Williamsburg, Virginia, and the Westgate Park CityResort in Park City, Utah. Although the majority of the units inthe Westgate resorts are in the Orlando, Florida area, Westgatehas executed an Affiliation Agreement with Interval International,one of the two major timeshare exchange companies, which givestimeshare owners the flexibility to go to other locations fortheir vacation.

Westgate Resorts is wholly owned by Central Florida Investments,Inc. which has been in the timeshare business since the 1980s andis based in Orlando, Florida.

Cost inflation in raw material inputs, production, and deliveryhas forced packagers to focus on productivity, operationalefficiency, and in some cases asset realignment during 2007.Fitch expects this trend to continue in 2008, and some companiesin the industry are likely to reduce capacity or divest lessprofitable or commoditized businesses. The primary focus willcontinue to be cost containment and rationalization or surchargesas inflation pressures remain a concern. Contractual priceadjustments alone will not overcome margin pressure in all cases.

Fitch expects volume growth for most segments of the industry willbe 2%-4%, slightly ahead of a weakening U.S. GDP forecast, whichFitch projects to be about 1.7% in 2008. Stability in the keyfood, beverage, and home and personal care markets should sustainmodest volume growth, even as discretionary spending may becomechallenged. Of course, higher than expected inflation or a slowereconomic environment could challenge this outlook, and a varietyof risks could materialize to curtail growth in specific segments.

Packagers with global capacity such as Owens-Illinois (61% of 2006revenues derived outside North America) and Crown Holdings (72%outside the U.S.) should benefit from international growthparticularly in developing economies where GDP growth rates arestill projected to be anywhere from 5%-10% in 2008. Thosepositioned in these markets should continue to capture robustvolume growth.

Credit Fundamentals:

Fitch expects improving credit metrics for several packaging firmsin 2008. Cash flows and internal liquidity are likely to improvegenerally; margins should stabilize and could expand if firmscontinue to achieve pricing objectives and execute operatingefficiencies; and debt balances will likely remain stable for mostfirms. Major balance sheet restructuring is less likely in 2008,even for the most highly leveraged issuers. Current liquidity issolid in the industry and cash deployment has begun to lean towardshare repurchases for some companies, such as Crown Holdings.Other priorities for cash will be global footprint expansion,restructuring, and capacity rationalization in some cases.

Credit metrics for several Fitch rated issuers improved during2007 as better operating performance led to improved cash flowsfor some firms while others engaged in divestitures or asset salesto deleverage their balance sheets. Firms such as Owens-Illinoisand Solo Cup achieved substantial debt reduction throughdivestitures during the year and are now better positioned toimprove cash flows and credit metrics in 2008.

Other firms such as Ball Corp. and Graham Packaging improved cashflows through operational improvements, streamlining assets, orreducing capital expenditures. However, in Fitch's view, bothBall and Graham may need to address performance issues withplastic beverage packaging in 2008, perhaps throughrationalization or divestiture. Some forms of this type ofpackaging have become less profitable in recent years ascompetition has increased.

As the U.S. dollar depreciated by over 10% versus the Euro duringthe year, U.S.-based global packaging firms benefited fromfavorable currency exchange, but, to the extent they carryforeign-denominated debt, higher translated debt balances lessenedthe potential effect on leverage metrics. Further decline in thedollar in 2008 is not likely to have real economic impact on mostpackaging firms with the important exception that the dollar'svalue could affect the pricing or trade flows of oil, natural gas,and various raw material feedstocks and inputs. The weaker dollarmay spur foreign-led acquisition in the U.S. in 2008 withtransactions more likely in the fragmented plastic packagingsegment.

Credit Markets and the Economy:

Fitch sees limited risk to most packaging companies in 2008 in thewake of less liquid credit markets in the second half of 2007.The liquidity position and debt maturity profile for many highlyleveraged packagers indicates sufficient financial flexibility andlow refinancing risk in most cases. However, the tighter creditconditions will likely lead to a slower M&A environment in 2008.

Fitch expects less interest in the sector from financial sponsorsas the balance likely shifts to M&A that is strategicallymotivated in 2008. There is some risk that companies wishing todivest businesses or assets will have greater difficulty in 2008than in the past several years, and valuations may fall as aresult. Two large transactions could take place next year withthe sale of Alcan's and Alcoa's packaging businesses stillpending. Both businesses are global in nature and serve a varietyof end-markets. Alcoa's assets are valued at around $2 billion,while Alcan's could be closer to $4 billion. Interest from globalcompanies and private equity firms has been reported. Given thecurrent credit market conditions, transactions may be delayed butare still possible in 2008, especially if cash-rich strategicinterests enter the market.

Another pending transaction is the ultimate financing arrangementfor Hindalco's bridge facility which was put in place in 2007 tofund the acquisition of Novelis. The financing totals about $3billion and is expected to be finalized in late 2007 or early2008, but conditions in the global credit markets could affect thetiming of the transaction.

Fitch continues to believe that a potential recession in the U.S.poses greater risk to smaller companies and those that derive agreater share of business in North America. However, thepackaging and containers sector in general is less sensitive to abroad economic slowdown. During the recession of 2001-2002, mostpackaging firms did not see a material deterioration in creditmetrics, although some did show a modest contraction inprofitability.

Outlook for Major End-Markets:

The packaged food industry could experience a further change inlandscape in the coming year. Restructuring activities have ledto a number of assets and brands changing hands as these companiesseek to stimulate growth and improve profitability. Packagingstrategies will continue to play an important role in the food andbeverage categories. The rapid pace of conversion from glass andmetal to plastics in some categories seems to have slowed somewhatin 2007. Even so, innovations such as Graham Packaging's newclear polypropylene resealable food container could spuradditional conversions given it's transparent and light-weightproperties. Flexible food packaging such as stand-up pouchesshould continue to show solid growth.

As prices for agricultural commodities and food ingredients havebeen climbing, packaged food makers and the food service industryin general have been forced to raise prices to pass on costinflation. A key question is whether packaging firms will also beable to continue to achieve pricing power, given the multiplesources of cost inflation - from cattle feed to energy and fuel -that the food industry is coping with. To date, higher costs havebeen absorbed through productivity improvements, margin erosion insome cases, and price increases, throughout the packaging and foodindustry value chains. However, there is some risk that demandcould at some point become sensitive to price, even in the stablefood and beverage markets.

For example, one area to watch in the coming year in particular isthe dairy segment. With retail milk prices soaring by nearly 18%in the first nine months of 2007, dairy-based products have metelasticity in consumer demand, and firms have seen a materialweakening in unit volumes. The lower volumes are in turnaffecting firms that supply dairy product packaging, such as milkand yogurt containers.

In the beverage categories, carbonated soft drinks continue tolose share to healthier options such as isotonic beverages andbottled water, a trend which is likely to continue in 2008.Isotonic beverages saw softer volumes in 2007, which Fitchbelieves could continue in 2008, although there is some evidencethat a focus on promotion may be stimulating growth again. Thebeer category remains very competitive. Specialty and nicheproducts are stimulating demand and producing high growth rateswith glass packaging benefiting the most so far.

It is difficult to predict trends in substrate use in the food andbeverage markets. Consumer preference, raw materials pricing, andcost to deliver are part of the complex formula that contributesto the packaging decision.

In the home and personal care categories, product innovation hasbolstered demand and unit volumes. Innovative, value-addedpackaging should continue to garner higher margins in somecategories. Some household-product makers are anticipating highercosts for packaging in 2008, as resin prices continue to be passedthrough by converters. In some cases though, Fitch anticipatesthe packagers will face pressure as products move to smaller orlighter plastic packaging in response to environmental or costconcerns.

Outlook for Raw Materials:

Robust global demand for commodities is likely to support elevatedprices for packaging inputs such as steel tin plate, aluminum, andsoda ash. Although prices for metals such as aluminum stabilizedthrough 2007, helped in part by less speculative activity, Fitchexpects the general raw materials trend to be stable, with littlechance of meaningful price declines in 2008.

Resin prices in North America have been trending higher in thesecond half of 2007, spurred by rising oil prices and robustexport demand. Further price increases are scheduled for manyresin types in the remainder of the year. Fitch expects resinprices to moderate somewhat in 2008, although further appreciationin crude oil prices could dampen the expected softening. Severallarge polyethylene capacity additions in 2007 and 2008 shouldbegin to affect pricing for PET, HDPE, and LDPE particularly inthe second half of 2008 and more materially in 2009.

This is a list of Fitch-rated issuers and their current IssuerDefault Ratings in the North American packaging sector:

* Fitch Expects Improvement for US Healthcare Sector in 2008------------------------------------------------------------Fitch Ratings expects that the U.S. Healthcare sector will face anoperating environment in 2008 that is similar to 2007, with strongdemand and cost containment efforts offsetting pressure frompricing and product issues. Fitch's 2008 outlook for the U.S.Healthcare sector is stable.

Healthcare demand in the U.S. remains strong due to the agingdemographic of its population along with the industry's growingability to treat a wide range of health issues with new innovativeproducts and technology. This strength in demand is a keyfoundation upon which Fitch expects the industry to support steadyrevenue growth in spite of competitive and regulatory pressuresthat can have a negative impact on pricing and costs. Pricingpressure remains the largest offset to strong demand growth indriving revenue growth.

While Fitch expects that the U.S. Healthcare industry willgenerate revenue growth in 2008 at a rate that approximates 2007,many of the same pricing pressures remain. For example, thegeneric drug industry will experience strong volume growth fromthe loss of patent exclusivity of branded pharmaceuticalsrepresenting greater than $8 billion of annual U.S. revenues.Additionally, the growing popular desire to control healthcarecosts is leading to ever greater and more rapid generic drugsubstitution. Branded pharmaceutical companies have been the mostnegatively affected by the growth in generics and this trend isexpected to continue in 2008 and accelerate in 2010 with thepatent expiration of a variety of very popular drugs.Interestingly, the generic drug pharmaceutical companies also facepricing pressure as generics move even more quickly to commoditypricing levels with the increasing legitimacy of low-costproducers in the U.S. market, including foreign manufacturers.

Similarly, Fitch expects medical device companies to continue toface pricing and volume challenges associated with drug-elutingstents and cardiac rhythm management. These challenges will leadto continued soft revenue growth for those companies in 2008 andmake it more important that new product development andacquisitions be successful to meet the profitability void left byDES and implantable cardioverter defibrillators.

In contrast to the above, Fitch expects that favorable pricingtrends and continued acquisitions will offset weak patient volumesand continued problems in uncompensated care in the for-profithospital segment in 2008.

Fitch anticipates that the U.S. Healthcare industry will produceEBITDA growth in 2008 comparable to 2007. In spite of generalpricing pressure, EBITDA margins will be supported by on-goingcost containment and various restructuring activities of someparticipants. Fitch believes that capital spending will berelatively flat in 2008 compared to 2007 and that this will leadto stable free cash flow generation. While shareholder-friendlyactivities are expected to continue in 2008, Fitch believes thatthis will continue at a lesser extent due to decreased leveragebuyout pressure associated with a tightening credit environment.Acquisition activity is generally high in the U.S. Healthcareindustry due to the need to fill product pipeline gaps, acquiremanufacturing capabilities, or to scale existing businesssegments. While acquisition activity was very strong for thesector in 2007, Fitch believes this will continue in 2008 withfurther industry consolidation and a focus on 'bolt-on'acquisitions. Nevertheless, Fitch expects that debt totals willremain relatively stable for the industry in 2008.

Finally, Fitch notes that sector performance could besignificantly affected by the enactment of any regulatory reform.Fitch expects that many topics of interest will receive nationalattention during the 2008 election year, including: universalhealthcare, a pathway for generic biologics, patent reform, anddirect government pricing negotiations. However, despite theincreased attention to regulatory topics in 2008, Fitch believesthat meaningful changes to policy are unlikely to occur untilafter the presidential election.

Fitch believes that credit ratings for most U.S. Healthcarecompanies will be stable in 2008. Additionally, Recovery Ratings,which apply to speculative grade operators, should be relativelystable as underlying operational or asset values are expectedremain unchanged and debt levels are expected to be steady.

Pharmaceutical Manufacturers:

Fitch expects that the U.S. pharmaceutical industry will see astable outlook in 2008 and will face an environment characterizedby sustained pressure on branded prescription drug pricing whilemaintaining solid investment toward R&D programs. Companies'efforts to broaden product portfolios will be challenged byincreased regulatory agency scrutiny of adverse effects,particularly those pertaining to the heart and kidney. The totalof FDA approvals of new molecular entities in the coming yearcould be near the low experienced in 2007. Prescription drug costcontrol by managed care and third-party payers, with emphasis ongeneric substitution, will exacerbate revenue losses and possiblypressure margins for those firms with looming U.S. drug patentexpiries in the following year, specifically Merck (with Fosamax),Abbott (with Depakote), and J&J (with Risperdal and Topamax).Margin support in 2008 will be derived from the commercializationof higher-margin specialty drugs, especially oncology products,and continued cost containment initiatives. Fitch expects marginsfor brand-name pharmaceutical manufacturers to hold relativelyconstant during 2008 despite the difficult industry conditions.

Fitch anticipates that consolidation of the generic pharmaceuticalindustry will continue as generic firms attempt to gain leveragewith managed care and third-party payers in light of pricingpressure. Typically industry margins may remain as pressure fromgeneric drug pricing and low-margin authorized generic agreementsmay be more or less offset by increased volumes andcommercialization of semi-exclusive generic pharmaceuticals.

Generally, cash flows for both generic and brand-name drugcompanies are expected to cover capital requirements in 2008,especially as firms continue to rationalize portfolios of researchand manufacturing facilities. The pharmaceutical industry,historically shareholder-friendly, is anticipated to devotesignificant operating cash flow to raising dividends andsatisfying share repurchase programs, which could be acceleratedby the absence of viable acquisition opportunities.

Medical Devices:

Although demographics and advancements in medical technology areexpected to drive long-term growth for medical device companies,Fitch, in general, has a negative outlook on this sector. Achallenging environment for DES and ICD are expected to weigh onthe sector's profitability and cash flow generation in the nearterm.

ICD and DES each account for approximately 15% of the medicaldevice market and carry relatively high margins. Early on, bothplatforms were expected to offer significant growth opportunities,and companies built infrastructure to support this expectedgrowth. However, safety questions regarding blood clotsassociated with the use of DES has resulted in significant andrapid revenue declines over the past year. Similarly, productperformance issues have had a strong negative impact on the salesof ICD. This situation has led companies to reduce their coststructures to reflect the present reality of the lack of successassociated with DES and ICD. Fitch believes that ICD sales couldexperience the start of a rebound in 2008 barring any additionalproduct performance setbacks. Additionally, Fitch believes thatit is nearly impossible to determine whether there will be anysales recovery associated with DES, because of the perceptionproblems associated with this product.

For-Profit Hospital Operators:

Fitch's outlook for the for-profit hospital industry in 2008 isstable. Uncompensated care - bad debt plus charity care anddiscounts to the uninsured - and weak volumes were key challengesfor the sector in 2007 and are expected to remain so in 2008.Fitch believes that providers will continue to experience highlevels of uncompensated care which will pressure EBITDA margins,although there may be some moderation in the growth of bad debt.

In addition to bad debt, Fitch predicts providers will continue tobe challenged by weak volumes. In Fitch's opinion, for-profithospital operators have been facing increased competition fromnon-profit hospitals and from entrepreneurial physicians, whichhave moved in-patient business into specialty hospitals,outpatient facilities, or even the doctor's office. Fitch expectsthis trend to continue in 2008, and for providers to experiencelittle growth in inpatient admissions.

Although providers will be challenged by uncompensated care andweak volumes, Fitch expects favorable pricing and acquisitions tosupport credit metrics for the sector. Managed care pricing islargely set for 2008, and Fitch expects continued mid- to high-single-digit pricing increases, on average. Fitch believes thenew Medicare IPPS rules may be more of a challenge, particularlyfor rural operators. The adoption of the MS-DRGs, behavioraloffset, and other changes will result in rate increases below theaverage experienced for the past couple of years. However,Medicare pricing is still expected to increase in 2008. Inaddition to pricing, Fitch believes growth will be driven byacquisitions, with certain providers, such as Universal HealthServices and LifePoint, expected to be more active than others,such as Community Health Systems and Tenet.

* Fitch Has Positive Outlook For NA Commc'l Aerospace Industry--------------------------------------------------------------Fitch Ratings has a positive outlook for credit quality in theNorth American commercial aerospace industry in 2008, and a stableoutlook for credit quality in the North American defense sector.The favorable outlook for commercial aerospace is based on demandoutside of North America, which has resulted in large order booksand strength in all commercial product segments. Concerns abouteconomic weakness have increased in recent months, but Fitchestimates that only a global recession would change the positiveoutlook for commercial aerospace.

The defense credit outlook continues to be supported by highDepartment of Defense spending levels, although spending growth inthe core budget should slow. Supplemental defense spending tosupport operations in Iraq and Afghanistan will likely continuethrough 2008, and any impact from lower supplemental spendingwould not be significant for several years due to the need toreset and modernize equipment. The outcome of the U.S.presidential elections is not likely to affect core defensespending until FY2011.

Global Exposure Limits Impact of U.S. Economic Slowdown

U.S. economic weakness could test the strength of the currentcommercial aerospace upturn, but Fitch believes the industry wouldpass that test because of the global diversity of commercialaerospace demand. For example, at least 75% of the current largecommercial aircraft backlog is from customers outside NorthAmerica. In Fitch's view, there would need to be a substantialamount of contagion leading to a global economic downturn for thecommercial aerospace outlook to become negative. The sector isnot exhibiting signs of weakness at this time, as illustrated bythe strong orders for LCA and business jets in the past two-threemonths. The most significant concern would be that high fuelprices and higher interest rates combine to compress already thinairline profit margins.

Fitch will continue to monitor several key items for signs of achange in commercial aerospace trends. The business jet marketwould likely be the first segment to show weakness, in Fitch'sopinion, because of substitute forms of travel and higher exposureto North America demand. Other data that will be watched includeglobal passenger traffic, global cargo traffic, global airlineprofitability, delivery deferrals, and order cancellations. Fitchdoes not believe lower orders in 2008 would be a warning sign ofcommercial aerospace weakness because of the high orders in thepast three years and the large backlogs in the industry.

There has been no noticeable impact on the aircraft finance marketfrom the 'credit crunch' at this point, but it is an area to watchin 2008. Given the large backlog in the commercial aerospaceindustry (more than 6,000 LCA), there will be several hundredbillion dollars of new aircraft to be financed and insured overthe next several years. Commercial aircraft have been a strongasset class over the past few years, attracting a significantamount of capital. There were several capital market aircrafttransactions in 2007, but the market still mainly consists ofleasing companies and banks. Fitch expects this to continue in2008. The healthy aircraft finance market has benefited somemanufacturers with finance subsidiaries which have been able toreduce financing assets, raising free cash flow.

Commercial Aerospace

Fitch expects all segments of the commercial aerospace industry todeliver solid growth in 2008, and this growth should continue into2009. Orders have exceeded expectations again in 2007, and Fitchnow projects that most parts of the commercial aerospace industrywill not reach a delivery peak until 2009 or 2010. Substantialorder backlogs provide a cushion to delivery estimates,particularly in the LCA segment. Markets outside of North Americacontinue to drive the strong demand for commercial aerospaceproducts, and the current demand is a mix of both a cyclicalupturn in some markets and secular growth in other markets. Risksto the outlook include exogenous shocks, changes in globaleconomic activity, supply chain pressures, execution on newprograms, production increases, and labor negotiations.

These expectations for some key commercial segments areincorporated into Fitch's credit ratings:

-- Large Commercial Aircraft: Fitch expects LCA deliveries from Boeing and Airbus to rise to approximately 980-1000 aircraft (up 11%) in 2008 from approximately 890 aircraft in 2007, which is up about 7% from 2006 deliveries. Fitch expects deliveries to rise to more than 1100 aircraft in 2009, with further increases in 2010. Deliveries in 2008 should be split nearly equally between the two manufacturers (with a slight edge possible to Airbus), and the mix between wide-body and narrow-body aircraft should be about the same in 2008 as in 2007, before shifting in favor of wide-body deliveries in 2009 as 787 production increases. Orders have exceeded expectations for the third consecutive year, totaling more than 2,100 aircraft year-to-date. Fitch expects orders to decline in 2008, but the book-to-bill ratio could still approach 1:1 in 2008 given some pending aircraft campaigns.

The order backlog at the end of 2007 should exceed 6,100 aircraft, or more than six years worth of production at expected 2008 production rates. The large backlog supports the rising delivery outlook, as does the production restraint exhibited by Boeing and Airbus so far in this upturn. Orders from U.S. legacy airlines in the next several years could add further support to the upturn, although the likelihood of U.S. orders could be reduced by a U.S. recession or airline consolidation. Substantial order backlogs provide a cushion to the upturn, and Fitch estimates that cancellation of even 15- 20% of existing orders would still leave the industry with enough backlog to support modest delivery increases for several years. Risks to Fitch's outlook include supply chain constraints, execution of production increases and new aircraft programs (787 and A380), exogenous shocks such as terrorist attacks and disease pandemic, economic weakness, and labor issues (Boeing contract renewals and potential further cuts at Airbus with Power8). Key events in 2008 will include 787 first flight (late first quarter), 787 first delivery (November/December), and the potential expansion of Airbus' Power8 restructuring program.

-- The business jet market should continue to show strong growth in 2008, with expected deliveries up 14%-15%, excluding some VLJ deliveries which would bring growth rates up further. Aircraft delivered in 2008 should exceed 1,200 units, up from more than 1,000 units in 2007, which is up 18-20% over 2006. The key development in this segment continues to be the increasing percentage of orders from outside North America, with most manufacturers reporting that 50% or more of orders are coming from overseas. Other drivers of the strong market include healthy corporate profits and liquidity, as well as replacement demand. It now appears that the peak of the business jet cycle is in 2009 at the earliest. Risks to the outlook include supply chain constraints, new entrants, and economic growth. Fitch believes that the business jet market would be the first commercial aerospace segment to exhibit weakness in the face of an economic slowdown because there are substitute forms of travel and the segment has a higher exposure to North America than some other aerospace segments.

-- The regional aircraft market rebounded in 2007 from a trough in 2006, and growth should continue in 2008. It is useful to divide this segment into regional jets and turboprops. RJ deliveries by Bombardier and Embraer will likely rise 18-20% in 2008 to 220-225 units after rising an estimated 9-10% in 2007, when Embraer's higher deliveries offset Bombardier's production decline. There continues to be a shift to larger RJ's, while the 50-seat market has disappeared. RJ orders have been strong in 2007, and a key development has been the turnaround in Bombardier's orders, which more than doubled. Turboprops from Bombardier and ATR are benefiting from high fuel prices, and deliveries should rise 45-50% in 2007 to approximately 110 aircraft and around 20% in 2008. New entrants are a key development to watch in this segment. The first flight of the Sukhoi Superjet 100 could occur in late 2007 or early 2008, and Mitsubishi's launch decision for the MRJ is expected in the first half of 2008. Bombardier's decision on whether to launch its CSeries airplane in the lower part of the LCA market will be an important event in 2008.

-- Aftermarket/Services growth should be in the mid-to-high single digits in 2008, slightly above projected growth in global air traffic. This high-margin segment is an attractive business, and it could be the focus of some M&A activity. Drivers of longer-term growth in this segment include the aging of the regional jet and Airbus fleets, global air traffic growth, the growth of low cost carriers, and outsourcing by airlines and governments. Risks to the outlook include lower air traffic caused by economic weakness or shocks, leading to the parking of older aircraft. A longer-term issue to watch is the growth of Parts Manufacture Approval material, which could cut into revenues and margins of original equipment aftermarket providers.

Defense Sector

High DoD spending levels continue to be the foundation of solidcredit quality in the defense sector. DOD spending levels arevery high after strong growth in the past 10 years. The recentlyenacted FY2008 DoD appropriations budget and expected supplementalfunds for the War on Terror could bring DoD spending in FY2008 tomore than $670 billion, including about $176 billion formodernization (procurement and RDT&E, the most relevant parts ofthe budget for defense contractors) spending in the core budget.Fitch's assumption for modernization spending growth over the nextfew years is in the low to mid single digits, excludingsupplemental funding for the War on Terror. Spending in otheraddressable markets such as Intelligence and NASA, as well as goodorders and rising backlogs in the first three quarters of 2007,also support the outlook for 2008. Concerns for the defensesector include shareholder focused cash deployment, programperformance, program risks within the budget, and Congressionalpressure.

However, the spending environment is less favorable than it hasbeen in the past several years. In addition to flatter growth,the defense industry is getting more scrutiny from Congress, whichhas begun to challenge spending growth on large programs. The leadsystems integrator trend is also being questioned.

Supplemental budgets have clouded the analysis of defense spendingin the past few years, but these supplemental budgets haveprotected the core DoD budget from cuts, and they are increasinglyincluding some modernization funds that benefit the prime defensecontractors. An important question is what impact the end ofoperations in Iraq and Afghanistan would have on defense spending.The most likely scenario is that spending would continue forseveral years to 'reset' the military to full operational status.

Some important events for the defense industry in 2008 include thesubmission of the FY2009 defense budget request (early February),the award of the USAF tanker contract (early 2008), and theelections in November. The outcome of the presidential electioncould have an impact on supplemental spending in 2009, but it isnot likely to have an impact on core defense spending for severalyears. Due to the timing and complexity of the DoD budgetingprocess, the new President will not have a full impact on thebudget process until the FY2011 budget, although there could be amodest impact on the FY2010 budget.

Cash Deployment, Debt Levels, M&A

Cash deployment will continue to be a key factor in North Americanaerospace & defense rating trends. Fitch calculates that the top15 North American A&D companies had approximately $30 billion ofcash on hand at the end of the third quarter, which should beaugmented by typically strong fourth quarter cash generation andsolid free cash flow in 2008. Most investment grade companies inthe sector are at or near their rating targets, and they generallyhave strong credit metrics for their ratings. As a result, Fitchexpects that debt reduction will not be a cash deployment priorityfor most investment grade A&D companies in 2008. Fitch expectssignificant spending on share repurchases and pensioncontributions, as well as for acquisitions and dividend increases.Fitch also expects that this spending will be executed using freecash flow and existing cash balances. Non-investment gradecompanies in the sector will focus on debt reduction andacquisitions. Overall, Fitch expects the amount of outstandingdebt in the A&D sector will decline in 2008, barring any large,debt-funded acquisitions. M&A activity in the A&D sector couldincrease in 2008 because of lower valuations and less competitionfrom private equity firms. Fitch expects the size of mosttransactions will be less than several billion dollars.

This is a list of Fitch-rated issuers and their current IssuerDefault Ratings in the North American aerospace/defense sector.

* Fitch Says Issuers Have Capacity to Maintain Fin'l Measures-------------------------------------------------------------Most companies in the U.S. diversified industrial sector havebenefited from a sustained period of strong domestic andinternational demand. As a result, financial results have beensolid and issuers have used the opportunity to shore up theiroperating and financial profiles where necessary. Fitch Ratingsbelieves issuers have the capacity to maintain appropriatefinancial measures in 2008 even in the event of weaker economicconditions or continued volatility in the capital markets.

Stable Credit Trends:

The majority of diversified companies demonstrate solid creditmetrics within their respective rating categories, largelyreflecting the impact of favorable economic conditions in recentyears. Not surprisingly, the number of rating upgrades anddowngrades during this period has been evenly balanced. In somecases, financial leverage is below expected long-term levels whichis not uncommon near the top of a credit cycle. If economicconditions deteriorate in the future, there could potentially bean increase in rating downgrades. However, many diversifiedcompanies have effectively streamlined their operations andfinancial flexibility and would be well-situated to cope with adownturn.

In addition, diversified companies by their nature usually do nothave large exposures to any single industry sector. Certaincompanies such as Parker-Hannifin and Dover, for instance, arediverse even within business segments, further broadening thecompanies' market exposure. As a result, swings in financialperformance tend to be more subdued than for companiesconcentrated in one industry. Growth at diversified companiesduring the top of an economic cycle may lag other sectors but, onthe flip side, the impact of an economic downturn on financialresults can normally be expected to be less dramatic.

Potential Credit Concerns:

Economic Slowdown - There are growing concerns about the directionof the U.S. economy. Operating results have remained nearhistorically high levels although the pace of growth has slowed.Corporate profits, for instance, grew only 2.7% in the thirdquarter on a year-over-year basis and are on a declining trend.GDP in the third quarter grew 4.9% but future growth is widelyexpected to be substantially lower.

Some markets have been strong and are expected to remain so atleast through 2008, particularly energy-related markets and theaerospace and defense sector. Exposure to these markets varieswidely among diversified companies, but some of the companies thatare benefiting include Ametek, Eaton, Honeywell, ITT, Parker-Hannifin and Textron. High order rates and backlog levels in thestrongest market sectors should help to mitigate the impact of aneconomic slowdown if it occurs. So far, any weakness has beenlargely limited to markets related to the U.S. homebuilding andauto sectors. Given the expanding presence in internationalmarkets by diversified companies, the impact of these weak sectorshas so far been limited.

There has also been a trend in recent years toward reducingexposure to the U.S. auto industry due to its long termchallenges. Even so, the impact of the homebuilding and automarkets could continue to affect certain end-markets in 2008 withrespect to residential lighting (Hubbell), residential airconditioners (United Technologies) and domestic auto production(Eaton). Certain non-residential construction markets haveremained solid, but there are indications of potential weaknesssuch as the decline in non-residential construction in October2007 reported by the U.S. Department of Commerce.

The risk of deteriorating conditions in the U.S. is partly offsetby continued economic growth in overseas markets which representthe source of fastest growth for diversified companies for theforeseeable future. Exposure to the U.S. is further mitigated byactions taken by diversified companies to locate operationsoverseas to be close to customers and suppliers. A number ofcompanies rated by Fitch already generate at least half of revenueoverseas including Harsco (62%) United Technologies (60%) andEaton (50%). Other companies derive a smaller, but stillsignificant portion of sales from international customersincluding Parker-Hannifin (40+%), Honeywell (37%) and ITT (35%).

However, shorter-term risks should be recognized. First, theperception that overseas markets are not as closely linked to theU.S. economy as they were in the past may be accurate, but thelinks have not disappeared. Should the U.S. experience arecession, demand in overseas markets could be negativelyaffected. Second, the economies in developing regions likelyremain more fragile and volatile than the U.S. An economicdownturn in these regions could behave in unanticipated ways andcreate challenges for companies that have a significant presence.

Volatile Credit Markets - As mentioned above, diversifiedcompanies have coped relatively well with challenges in thecapital markets. Fitch anticipates this will continue to be thecase in 2008. However, market conditions can change quickly andin unpredictable ways. It remains to be seen how the sub-primemortgage situation will eventually be resolved and, until creditmarkets stabilize, liquidity will represent a meaningful potentialrisk.

Inflation - Inflation has not been a significant problem for theU.S. economy for many years but the risk of higher inflation hasbeen increasing. Strong global economic growth has contributed tohigher commodity prices that could potentially filter through tothe rest of the economy. In the manufacturing sector, the pass-through of higher costs has become routine but core inflation inthe overall economy still appears to remain within the FederalReserve's comfort range. However, any future increase in inflationwould give policy makers less room to maneuver as they use fiscaland monetary policy to influence the economy.

Sufficient Financial Flexibility:

Liquidity - Despite tighter conditions in credit markets duringthe past several months, diversified companies have been lessaffected than financial firms and liquidity typically has not beena significant concern. Diversified companies have continued to beactive issuers of long term debt and the availability of bankcredit does not appear to have tightened noticeably. Bycomparison, however, the commercial paper market has been morevolatile, and even some F1 issuers have occasionally experiencedhigher rates and shorter maturities. Potential credit concernsabout further turmoil in the credit markets are partly mitigatedby generally conservative debt structures that support financialflexibility across the diversified industrial sector. The issueof liquidity risks for diversified companies is discussed morefully in an Oct. 10 Fitch report 'U.S. Industrials: Limited Impactof Liquidity Concerns'.

Discretionary spending - Unless the growth in earnings and cashflow across the diversified sector reverses materially in 2008,Fitch anticipates that companies will continue to deploydiscretionary cash for acquisitions and share repurchases.Strategic buyers, which continue to actively pursue acquisitions,may even see less competition from financial buyers, at leasttemporarily, until credit markets stabilize. On the other hand,if the economy deteriorates there is a risk that prices paid forrecent acquisitions could have a negative impact on leverage. Adownturn could potentially hurt operating results and impair theability of companies to fund expenditures and manage their debtlevels. However, Fitch anticipates that in such a scenario, mostdiversified companies would have the flexibility to reducediscretionary spending, including share repurchases, to maintainappropriate financial measures.

Focused Operating Strategies:

The current economic expansion, particularly in internationalmarkets, has encouraged diversified companies to focus on theircore businesses. They have exited non-core or low growthbusinesses and made acquisitions as a way to enter attractiveproduct and geographic markets. Furthermore, in response to highraw material costs, movements in currency exchange rates, and theincreasing integration of the global economy, diversifiedcompanies continue to rationalize their operations to improveproductivity and control costs. Some of the specific actionscommonly taken include consolidating internal functions such aspurchasing, moving operations closer to customers, outsourcing theproduction of commodity products, and upgrading and consolidatinginformation technology. Such actions support the ability ofdiversified companies to react quickly to changing marketconditions and to maintain their competitive positions.

These are the list of Fitch-rated issuers and their current IssuerDefault Ratings in the U.S. diversified industrial sector.

All of them bolster Arthur Schlesinger, Jr.'s statement in theopening chapter: "The economic experience of the United Statesprovides a compact example of the growth of an underdevelopedcountry into a great and rich industrial state."

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Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers'public debt and equity securities about which we report.

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